STOCKS NEWS EUROPE-EADS shares fall after A400M fresh delay

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09:19GMT 12Jan2009-EADS shares fall after fresh A400M delay

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Shares in EADS (EAD.PA) drop 3.6 percent, the biggest losers on the CAC 40 .FCHI, after the parent of Airbus called on Friday for a renegotiated contract with NATO nations and indicated the A400M airlifter would not be ready before 2012.

"These fresh delays are dragging down the stock, with fears of contract penalties," one analyst says.

The plane -- designed to plug gaps in transport capacity in conflict zones like Afghanistan or to carry out humanitarian missions -- has been hit by delays in building its massive turbo-prop engines, sparking a public row with suppliers.

In a statement after markets closed on Friday, EADS said it wanted to "discuss the programme schedule along with changes to other areas of the contract including in particular certain technical characteristics."

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