The German government plans to buy a bigger stake of up to 12 percent of EADS from Daimler and private banks, a government source said on Friday, in a sign it wants to defend national interests in the European aerospace group. "The draft of the supplementary budget foresees 1.6 billion euros ($2.1 billion) for this purpose," the source said.
Germany had already said it would buy a 7.5 percent stake in EADS from Daimler, and the additional 4.5 percent will come from the Dedalus consortium, belonging to private banks. The deal will be carried out via state-controlled development bank KfW. Asked for official confirmation a spokeswoman for the Economy Ministry said the ministry had made provisions to buy further EADS shares in the event that private banks wished to sell them.
In taking a larger stake in EADS, the parent of aircraft maker Airbus, the government may well add to tensions over site locations at the group, which has already warned Germany it will not tolerate meddling. Shares in EADS traded flat at 1140 GMT at 30.23 euros, erasing morning gains of 1.8 percent.
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