PARIS – Shareholders of Airbus’ troubled parent company EADS are close to a deal that would end a cumbersome dual management structure, an official said Monday.
German Thomas Enders may soon be named the sole chief executive of European Aeronautic Defence &Space Co. NV, while a Frenchman, possibly Arnaud Lagardere, will become sole chairman, according to German and French officials who asked that they not be identified.
Frenchman Louis Gallois would retain his role as chief of Airbus, but relinquish his position as co-chairman at EADS, where he serves with Enders, said an official close to one of the shareholders, who also asked not to be named.
“EADS becomes very French with such an agreement,” said CM-CIC Securities analyst Agnes Blazy. “It’s a good compromise if they get it.”
The possible shift comes just ahead of talks between German Chancellor Angela Merkel and French President Nicolas Sarkozy, who are scheduled to meet at Airbus headquarters in Toulouse.
The unusual management structure of EADS, which is run jointly by French and German executives, was one reason cited for troubles at Airbus in a report released by the French Senate last month. Senators recommended a single chairman and a single chief executive officer, leaving shareholders to debate the trickier question of who would take those seats.
The French government owns 15 percent of EADS, and French conglomerate Lagardere Groupe SCA holds 7.5 percent. The German government holds no direct stake, but DaimlerChrysler, based in Stuttgart, Germany, holds 22.5 percent.
EADS has been tarnished by a series of mishaps over the past two years at Airbus, with revelations of management errors, technical setbacks, communication failures and huge severance payments for departing executives. Top executives have been ousted and a massive restructuring plan will result in 10,000 job cuts over four years. The setbacks have cost the company billions in profits and saddled Airbus with its first-ever loss last year.
EADS spokesman Alexander Reinhardt said shareholder talks are ongoing. He insisted, however, that the current management structure works well, with Enders and Gallois sharing the role of chief executive, and Lagardere and German Rudiger Grube sharing the chairmanship.
The German government declined to comment Monday, while French presidential spokesman David Martinon told BFM radio that “no deal has been found between the French and the Germans, notably on names.”
Sarkozy made it clear that helping the struggling European planemaker is a priority in what he envisions as an “ambitious industrial policy.” His first visit as president was to Germany where he spoke with Merkel about Airbus. His second trip was to Airbus headquarters.
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