Berlin to buy stake in EADS – report


The German government is preparing to take a stake in European aerospace company EADS after no buyers for part of Daimler’s holding came forward, the Financial Times said today.

The newspaper reported a senior official as admitting the search for a new buyers for the German carmaker’s 7.5 percent stake was “hopeless.”

The government has been searching for new buyers for a third of the holding controlled by Daimler since February.

German sources had previously reported to Reuters that efforts to find a buyer had shown there was only a very limited number of industrial or financial groups who were seriously interested in the stake.

The FT said, however, that KfW KFW.UL, the state-run development bank, now may be in line to spend about 2.5 billion euro buying Daimler’s 7.5 percent stake, and a further 7.5 percent that the carmaker has indicated that it wants to sell next year.

The French government and French media group Lagardere together hold 22.5 percent of the aerospace group.