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Aircraft industry

BAE Systems Denies Plans to Sell 20% Stake in Airbus

Strategic Insights

— 1 min read

BAE Systems' chief executive and chairman, Mike Turner and Dick Olver, have dismissed speculation that the company is looking to raise cash by selling its 20% stake in Airbus. In an interview with the Financial Times, they stated that the share is "not for sale" as there is no better use for the asset. The stake is valued at around £2.5 billion, with Airbus' main owner, EADS, having long coveted the holding.

The speculation surrounding the sale of BAE's stake in Airbus has risen in recent months, particularly given the company's aggressive push for US acquisitions and its divestment of long-held assets in continental Europe. However, Mr. Turner emphasized that the roll-out of the A380 superjumbo is poised to dominate the wide-body commercial aircraft market, and BAE would like to see the fruits of its investment in the double-deck jet.

Key Takeaways:

  • BAE Systems has denied plans to sell its 20% stake in Airbus, with its chief executive and chairman stating that the share is "not for sale".
  • The valuation of the stake is around £2.5 billion, with EADS having long coveted the holding.
  • Speculation surrounding the sale of BAE's stake in Airbus has risen in recent months due to the company's aggressive push for US acquisitions and its divestment of long-held assets in continental Europe.
  • BAE is committed to the A380 superjumbo, with Mr. Turner stating that it is poised to dominate the wide-body commercial aircraft market.
  • The company has appointed two new non-executive directors for its board, both of whom are US citizens, as part of its efforts to reflect the increasingly American nature of its business.
  • No talks have taken place with EADS, and no bankers have been approached about a potential deal to sell BAE's stake in Airbus.

Statistics:

  • £2.5 billion: The valuation of BAE's 20% stake in Airbus.
  • 40 years: The time period during which the Boeing 747 held a monopoly at the top end of the commercial aircraft market.
  • 2: The number of new non-executive directors appointed to BAE's board, both of whom are US citizens.
  • 1: The number of non-executive directors appointed to BAE's board in June 2009, Peter Weinberg, an American citizen.

Sources:

  • The Financial Times, "BAE rules out sale of Airbus stake", [no publication date]

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