Lower Saxony state is planning to acquire part of Daimler Chrysler’s stake in Airbus parent EADS to safeguard jobs in northern Germany

The German state of Lower Saxony is planning to acquire part of Daimler Chrysler’s stake in Airbus parent EADS.

A spokeswoman for the state says Lower Saxony is looking to acquire 5% of the 7.5% which is being redistributed by Daimler Chrysler, representing around 0.375% of EADS’ total share capital. Daimler Chrysler is seeking to reduce its 22.5% EADS holding to 15%.

“The government of Lower Saxony had a meeting today and they decided to invest [in EADS],” notes the spokeswoman, adding that the investment will cost about €77 million ($99.5 million) using today EADS share price.

Lower Saxony will be part of a consortium that is likely to include the local governments of German city states Bremen and Hamburg along with other state governments.

Lower Saxony’s spokeswoman declines to comment on potential partners, however she notes that the region is investing in EADS to protect a total of around 20,400 jobs across Bremen, Hamburg and Lower Saxony.

A Daimler Chrysler spokeswoman declined to comment. EADS was not immediately available for comment.

German and French entities each hold 22.5% of Airbus’ parent, and both national governments have indicated that they wish this level of commitment to remain despite Daimler Chrysler’s plan.

Source: FlightGlobal.com