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BAE to Sell its 20 Percent Airbus Stake

BAE Systems, British Defense and Aerospace Group, has confirmed the intention to sell its 20% stake in Airbus. BAE systems confirmed that discussions are already under way with Franco-German group European Aeronautic Defense and Space Co., which is the owner of the remaining percent of Airbus.

EADS recently valued BAE`s stake in the aircraft maker at 3.5 billion euros ($4.3 billion), reports The Associated Press. BAE has long been expected to sell the Airbus holding as it focuses on building its presence in the giant U.S. defense market through acquisitions. EADS has had an option in place that would let it opt to take over the stake, and has made no secret of the fact that it is eager to take full ownership of Airbus.

Airbus has eclipsed U.S.-based Boeing as the world`s top-selling commercial aircraft manufacturer, delivering more planes than Boeing for the third straight year in 2005. The prospect of a sale prompted calls from British unions for emergency talks with BAE about potential job losses among 13,000 workers employed in Britain by the company.