‘Spain looking to double stake in EADS’

MADRID: The Spanish government wants to almost double its stake in EADS and bring more of the European aerospace group’s production to the country, an industry ministry source said on Tuesday.

The source was confirming a report in newspaper El Pais which quoted an industry ministry report.“It’s an existing aspiration of the government to raise its stake in EADS and consequently in Airbus,” the source said.

He added that a report had been circulated in the ministry several months ago contemplating Spain increasing its holding to 10% from 5.5%. Such an investment would cost about E1bn ($1.28bn), El Pais said.

“All we have to do now is wait and see if one of our fellow shareholders offers us such a package,” the source said. “It’s too early to talk about figures.”

He added that the government did not rule out corporate involvement to raise Spain’s participation in EADS.“The government could do this alone or together with the private sector.”

El Pais said the government had drawn up the report to present at an EADS board meeting in the middle of the month and at an industry ministers’ meeting at the Farnborough air show on July 17.

The paper said that Spain wanted to win more production deals from EADS’s Airbus unit, particularly in carbon fiber. More work could create between 800 and 1,000 jobs in Airbus Espana and increase annual turnover to E1bn, it said.Spain currently accounts for about 7% of Airbus’s production, the paper said.