DaimlerChrysler and Lagardère to reduce their stakes in EADS

Germany’s DaimlerChrysler and France’s Lagardère have unveiled plans to reduce their stakes in Airbus parent EADS.

EADS says in a statement that DaimlerChrysler and Lagardère have both entered into transactions which will reduce each of their stakes in EADS by 7.5% through the sale of 61 million shares.

The DaimlerChrysler transaction involves a group of international investment banks while the Lagardère transaction involves a group of French institutional investors.

EADS co-chief executives Tom Enders and Noël Forgeard say in a statement: “As this adds to EADS’s stock liquidity, we believe this will create value and help alleviate stock overhang concerns of shareholders. At the same time we welcome DaimlerChrysler’s and Lagardère's continued commitment to remain core shareholders of EADS, to share in and to support our future successes.”

After the transaction, DaimlerChrysler will reportedly still hold a 22.5% stake in EADS and Lagardère will have a 7.5% stake.

EADS, which is also publicly listed, owns 80% of Airbus and 50% of turboprop manufacturer ATR.

Source: Flight International