Wednesday, June 14, 2006

There's Trouble In Paradise: EADS and BAE Pub Clearing Donnybrook

It was reported late today by the Independent that BAE has accused EADS of sending the value of the company into the toilet in advance of having to settle up on BAE exercising it's put option to divest itself of the 20 per cent stake in Airbus it now owns.

BAE believes that the current spate of doom and gloom announcements from Festung Airbus is a "thinly disguised" attempt to reduce the price at which BAE's share will be bought back and thus reduce the drain on EADS coffers when the bill comes due. The Festung will announce what the import of its restructuring and corrective action plan will be at the Farnborough fandango-right after they've got to close the deal and ante up on the buyout.

Suspicious timing or a company in disarray? The jury's out.

As we say in the states on such matters: Gentlemen, start your engines.


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