EADS drops plans for golden share-report

Thu Mar 20, 2008 10:07pm GMT
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FRANKFURT (Reuters) - Aerospace and defence group EADS (EAD.PA: Quote, Profile, Research) has dropped plans to introduce a "golden share" and is mulling instead a cap on voting rights for shareholders to prevent a hostile takeover of the company, dpa newswire said.

EADS plans to cap voting rights of any shareholder at 15 percent, German news agency Deutsche Presse-Agentur reported on Thursday, citing unidentified people in the industry.

German carmaker Daimler (DAIGn.DE: Quote, Profile, Research) said no decision had been taken, while EADS and the German economy minstry declined to comment when contacted by Reuters.

The dpa report echoed a similar article by the Financial Times newspaper which reported on March 7 that France and Germany are finalising changes to EADS's corporate by-laws.

The countries want to prevent any investor considered predatory from owning more than 15 percent, the FT reported.

German aerospace coordinator Peter Hintze said at the time talks were taking place to determine whether a "golden share" should be created to defend the interests of Germany and France.

Any such move would have to be agreed by the EADS annual shareholder meeting in May.

The European Commission warned France and Germany not to introduce "golden shares," which give states special rights in publicly-listed companies.

EADS is controlled by the French state, French media group Lagardere (LAGA.PA: Quote, Profile, Research) and German carmaker Daimler, which jointly hold 45 percent of EADS, in a shareholder pact to secure Franco-German power-sharing.  Continued...

 
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