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Dubai buys EADS stake

Dubai buys EADS stake
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A Dubai government owned investment fund has bought 3.12% of the shares of EADS, the parent company of plane maker Airbus.

The fund, Dubai International Capital, said it supports EADS’ restructuring to try to regain investor confidence and emphasized it is not looking for a seat on the board or to play an active management role.

DIC is the latest institutional investor to take a stake in EADS following on from the purchase last year of 5% of the stock by a Russian state-owned bank. The company is mainly controlled by public and private French and German shareholders.

EADS welcomed the deal and said it had always wanted a shareholder structure that is as broad as possible.

DIC said it believes that parts of EADS other than Airbus – such as Eurocopter and its space division Astrium – have been an undervalued.

The share purchase could give a boost to Airbus’ order books. Emirates, which is also owned by the Dubai government, is the biggest customer for the A380 super-jumbo and the airline is due to decide in October if it will order the mid-sized A350 in preference to Boeing’s 787 Dreamliner.