BAE Systems Plc wants more details about the extent of Airbus’ industrial woes before recommending to its shareholders whether to accept the GBP1.9 billion sale of its 20% stake in the aircraft maker, the Financial Times reported on its Web site Tuesday. Last month, the U.K. defense company exercised a put option to sell the stake to the European Aeronautic Defence and Space Co. (5730.FR), which owns the rest of Airbus.
But BAE and EADS failed to agree to a price and appointed investment bank Rothschild to determine a fair value. Institutional investors were said to have been unhappy at the much lower-than-expected price Rothschild had set, FT reported, adding that they might still approve of the sale if convinced it reflects Airbus’ true medium-term value.
While BAE management believes it is unlikely that Rothschild’s valuation is wrong, they want to make sure they have seen the same data, FT reported.