There is strong interest from the Russian United Aeronautical Corporation (UAC)
Russia's Foreign Trade Bank (VTB) announced today that it is considering selling its 5% stake in the European aerospace consortium EADS to one of the Russian state-owned corporations.
VTB Chairman Andrei Kostin specifically cited the interest of the United Aircraft Corporation (UAC), a Russian monopoly that encompasses the entire civil and military aviation industry, and said that the sale will take place if the UAC finds the money and offers a good price.
He explained that CAU is interested in buying EADS shares, given that EADS owns 10% of the shares of the Russian aircraft manufacturer Irkut, which is itself part of the state corporation.
"Wherever we go, we plan to sell our EADS shares before the end of this year," Kostin told the press, according to the Interfax news agency.
He assured that VTB's decision to divest those shares has no political undertones and that the transaction will be carried out according to market conditions that are most advantageous for the bank.
"We want to minimize our risks without suffering losses," said Kostin, who announced VTB's decision to sell its stake in EADS during a banking forum in Germany on the 5th, citing concerns from other investors.
VTB's purchase of 5,02% of EADS for one billion euros last year and its plans to increase that stake raised concerns in Europe, amid fears that the Russian bank would try to gain a say in decision-making at the European group.
Officially, VTB maintained at all times that the acquisition, made at a time when the price of EADS shares had fallen, was only "a good and profitable investment", with no political undertones or indications from the Kremlin.
The Russian press commented at the time that this investment would not be so advantageous, since EADS shares, which in the summer of last year were trading on the stock exchange at 23 euros, were at that time worth 21,9 euros.
Interfax recalled that in mid-July, Kostin valued 5% of EADS shares at one billion dollars, the same sum that VTB had paid for those shares a year earlier.
On the other hand, VTB's management announced this month its plans to raise $5.000 billion in capital from abroad during the remainder of the year through the issuance of bonds, without specifying what those funds will be used for.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
