What a difference a global financial crisis makes. As recently as late August, Dassault Aviation executive chairman Charles Edelstenne was adamant that his company had no interest in increasing its 5% stake in Thales.
However, late November brought a U-turn, when it was revealed that Dassault had entered negotiations to buy the 20.8% Thales stake held by telecommunications group Alcatel-Lucent.
The change of heart was prompted by a sudden darkening of the business jet forecast, argues defence analyst Francis Tusa.
He notes that “last year, everything was riding high with business jets”, but adds that enough has happened since July/August for the current outlook to be “arguably the single biggest thing” behind Dassault’s move. Read more….