Airbus merger rumored

  • Associated Press
  • Friday, November 12, 2004 9:00pm
  • Business

PARIS – The French government wants to merge Airbus parent EADS with defense company Thales to create a new European giant to rival Boeing, a leading financial daily reported Friday.

Finance Minister Nicolas Sarkozy would not comment on the report in Les Echos that the government is pushing for a takeover of Thales SA by European Aeronautic Defence and Space Co., his spokesman said.

EADS, which is 15 percent owned by the French state and relies heavily on government orders for its military businesses, refused to say whether the companies had discussed such a deal. Media officials from Thales did not return phone calls.

But a source at one of the companies, who spoke on condition of anonymity, said a tie-up “has never been on the agenda.” If the French government wants Thales and EADS to link up, the source said, “it has to ask the other shareholders.”

The French state owns one-third of Paris-based Thales, which provides electronics and weapons systems for planes, ships and ground-based forces. Telecommunications equipment maker Alcatel SA and aerospace group Dassault SA together hold another15 percent.

French defense and media group Lagardere SCA owns 15 percent of EADS – the same share as the French government – while Germany’s DaimlerChrysler AG is the biggest shareholder with about 30 percent. EADS’ activities span passenger and business jets, fighters, helicopters, satellites and missiles.

“We don’t comment on speculation,” Thomas Froehlich, a DaimlerChrysler spokesman, said of the Les Echos report.

Investors took it seriously when trading opened in Europe, sending Thales shares soaring as much as 7 percent while EADS stock dipped 4.6 percent. By the end of trading, however, EADS shares had recovered most of their losses and closed 1.2 percent lower at $31.76. Thales shares closed up 5.2 percent at $42.96.

European defense consolidation has been the subject of feverish speculation after French electronic equipment maker Sagem SA and aircraft engine maker Snecma announced a surprise $5.8 billion merger deal in October to create a new defense group with annual sales of about $13 billion.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

(Image from Pexels.com)
The real estate pros you need to know: Top 3 realtors in Snohomish County

Buying or selling? These experts make the process a breeze!

Relax Mind & Body Massage (Photo provided by Sharon Ingrum)
Celebrating the best businesses of the year in Snohomish County.

Which local businesses made the biggest impact this year? Let’s find out.

Construction contractors add exhaust pipes for Century’s liquid metal walls at Zap Energy on Monday, Feb. 3, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County becomes haven for green energy

Its proximity to Boeing makes the county an ideal hub for green companies.

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

Rick Steves speaks at an event for his new book, On the Hippie Trail, on Thursday, Feb. 27 at Third Place Books in Lake Forest, Washington. (Will Geschke / The Herald)
Travel guru won’t slow down

Rick Steves is back to globetrotting and promoting a new book after his cancer fight.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.