BREAKING NEWS

BREAKING NEWS

BAE sets time limit to sell Airbus shares as price wrangle continues

Now Reading:

BAE sets time limit to sell Airbus shares as price wrangle continues

Text size Aa Aa

The divorce between the UK defence contractor BAE Systems and Airbus is getting messy.

Three weeks ago BAE said it wanted to sell its stake in Airbus to parent company EADS, but it seems they cannot agree on a price.

BAE owns 20% of the world’s biggest civilian plane maker and the Franco-German-Spanish company EADS holds the remaining 80%.

BAE has now said it may call for an independent valuation of its stake. Analysts estimates have ranged from 4.4 billion euros to 6.5 billion.

And it has set a time limit – until the end of May -for a deal to be reached.

EADS co-Chief Executive Thomas Enders has said the two side remained far apart on a price for the shares.

He told a media seminar: “Understandably the British want to achieve an astronomically high price, and understandably we want to pay a fair price.”

But both companies stressed that they are committed to finding a compromise.