spacetoday.net: EADS to acquire BAE Systems' stake in Astrium

Posted: Fri, Jan 31, 2003, 1:51 PM ET (1851 GMT)
The European Aeronautic Defence and Space Company (EADS) announced Friday that it was acquiring the portion of satellite manufacturer Astrium it did not already own in a deal with BAE Systems. Under the agreement, both companies will first each invest 84 millions euros (US$90 million) into Astrium. EADS will then pay BAE systems 84 million euros for BAE's 25% stake in Astrium. The agreement also includes the purchase of BAE Systems' stake in Paradigm, the EADS-BAE joint venture that will operate the Skynet 5 military communications satellite system for the UK. EADS had reached an agreement last year to acquire BAE Systems' shares in Astrium for 165 million euros (US$177 million), but the deal expired before regulatory approval could be obtained. The companies said the lower price of the new deal reflected "the current deterioration in the commercial space sector" as well as EADS' plans to improve the efficiency of Astrium to allow it to return to profitability by 2004.