PARIS, (AP) – Shares of Airbus parent EADS rose sharply Thursday on reports that a Dubai-based investment group was considering acquiring a stake in the European defense group.
But the investment group, Dubai International Capital, denied the reports, saying it “has no intention” of acquiring shares in EADS. The group said comments by its CEO, Sameer Al Ansari, had been taken out of context.
Dubai International Capital is hosting a German-Arab investment conference in Dubai this Saturday and Sunday, at which representatives from eight German companies including DaimlerChrysler and EADS, will be present.
Shares of EADS rose 4.7 percent to 22.33 euros ($28.53) in Paris, extending their 3.2 percent rise on Wednesday — when market rumors of an impending Middle Eastern investment began circulating.
European Aeronautic Defence and Space Co. declined to comment on the reports. “We welcome all shareholders investing in EADS shares and further internationalizing our free-float,” spokesman Michael Hauger said.
EADS stock has lost almost one-third of its value since the start of the year, buffeted by management turmoil within the company and its Airbus commercial airliner unit, as well as costly delays to the flagship double-decker A380 superjumbo.
Under the terms of its shareholder pact and governing statutes, EADS is effectively controlled by its two main industrial shareholders: DaimlerChrysler, which owns a 22.5 percent stake; and France’s Lagardere SCA, which owns 7.5 percent. The French government owns a further 15 percent but — in theory — defers to Lagardere on management questions.