By David Kaminski-Morrow in London
BAE Systems is to carry out an audit of Airbus in order to assist in deciding whether to proceed with disposing of its 20% shareholding of the European airframer.
Independent financial specialists called in to determine a value of the BAE share in Airbus concluded earlier this month that the stake was worth just €2.75 billion ($3.5 billion) – far less than BAE had hoped.
The valuation followed recent setbacks to the Airbus A380 programme and the subsequent financial impact on Airbus majority shareholder EADS, to whom BAE has been planning to sell its stake.
BAE is intending to audit Airbus before deciding whether or not to recommend the disposal to BAE shareholders, whose votes would ultimately decide whether the sale to EADS proceeds.
The audit, for which BAE has to give at least two weeks’ notice, will take at least until the end of August this year to complete.
“[We] expect that the audit will assist [the BAE] board in assessing whether or not to recommend that its shareholders vote in favour of the proposed disposal,” says the UK manufacturer.
Shareholders will receive BAE’s recommendation in a circular once the board has had the chance to review the audit’s outcome. EADS has yet to respond to BAE’s decision to audit Airbus.
Source: Flight International
