soulxtc
September 2nd, 2006, 08:02 AM
An opportunistic piece of financial speculation, or the first stage in an ambitious new strategic partnership? That's the big question after news that Russia's VneshTorgBank (VTB) has invested around $1 billion to acquire almost 5% of the European Aeronautic Defence & Space Corporation (EADS), the Franco-German aerospace concern that owns Airbus, the world's largest commercial aircraft producer.
Russia's leading business daily Vedomosti broke the news on Aug. 29, citing anonymous Russian government sources. According to the newspaper, the state-owned bank began purchasing EADS shares two months ago on the open market, and has now acquired a stake between 4.5% and 4.8%.
The transaction is a reminder of how high oil prices have filled Russian coffers, with more and more of that windfall now finding its way into investments abroad. And in part, VTB's interest can be explained by the attractive price of EADS shares.
In recent months the company has been beset by difficulties that have depressed its share price by some 40% since it peaked in March. Problems included delays to the development of its new A380 airliner, as well as management conflicts.
http://www.businessweek.com/globalbiz/content/sep2006/gb20060901_694183.htm?campaign_id=rss_topStories
Russia's leading business daily Vedomosti broke the news on Aug. 29, citing anonymous Russian government sources. According to the newspaper, the state-owned bank began purchasing EADS shares two months ago on the open market, and has now acquired a stake between 4.5% and 4.8%.
The transaction is a reminder of how high oil prices have filled Russian coffers, with more and more of that windfall now finding its way into investments abroad. And in part, VTB's interest can be explained by the attractive price of EADS shares.
In recent months the company has been beset by difficulties that have depressed its share price by some 40% since it peaked in March. Problems included delays to the development of its new A380 airliner, as well as management conflicts.
http://www.businessweek.com/globalbiz/content/sep2006/gb20060901_694183.htm?campaign_id=rss_topStories