Air Transport

Investment bank Rothschild has determined that EADS will have to pay €2.75 billion ($3.5 billion) for BAE Systems’ 20% stake in Airbus if the UK company sticks to its intention of offloading the holding.

The figure is far less than BAE Systems had wanted and is even at the low end of EADS’ initial assessment – made before the further delays to the A380 programme were revealed.

In a statement EADS notes: “Some €1.2 billion of Airbus’ cash is currently on loan to BAE Systems which is repayable at closing.”

It also says that the EADS board has decided to pay cash for the stake if the transaction goes through – a move that had been widely expected in view of the recent fall in its share price.

BAE Systems did not immediately comment on the development beyond confirming it.