29 Jun 2004 15:27 UPDATE 1-Russia's Irkut prepares to sell stake to EADS

29 Jun 2004 15:27 UPDATE 1-Russia’s Irkut prepares to sell stake to EADS
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MOSCOW, June 29 (Reuters) – Russian combat jet maker Irkut may issue new shares this autumn as a step towards a stake sale of five to 10 percent to Europe’s largest aerospace company, EADS , a source in Irkut said on Tuesday.

EADS’s efforts to forge closer ties with the maker of the Su-30 warplane could lead to it taking a stake in the broader Russian aerospace sector as Moscow plans to consolidate the industry into a single company over the next few years.

“Talks are going on and, because both parties are such big companies, it might take until autumn for us to issue new shares,” the source told Reuters, adding that Irkut was prepared to sell a stake of 5 to 10 percent.

“We are doing this for a strategic investor — that is, for EADS… Our managers are not prepared to sell their own stock. That’s why we are issuing new shares.”

EADS was not immediately available for comment.

Irkut shares were up two percent at 15.10 roubles on Moscow’s MICEX exchange at 1455 GMT. The broader exchange was down 1.63 percent.

EADS said in May it was close to a “positive decision” on taking a stake in Irkut, but gave no further details.

EADS and Irkut signed a deal earlier this year to cooperate in marketing Irkut’s Be-200 fire-fighting plane and on maintenance in Russia of helicopters from EADS unit Eurocopter.

Irkut’s plans for expanding sales in western Europe also include a project to equip its Be-200 plane with engines from Britain’s Rolls-Royce . ((Reporting by Yelena Smirnova and Maria Golovnina, editing by Tom Pfeiffer; Reuters Messaging [email]maria.golovnina.reuters.com@reuters.net[/email], +7095 775 12 42, [email]maria.golovnina@reuters.com[/email]))

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