China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Russia's UAC to buy EADS stake
MOSCOW (Reuters) - Russia's state aircraft holding firm United Aviation Corporation (UAC) said on Thursday it plans to spend about $1 billion to buy a 5 percent stake in European aerospace company EADS (EAD.PA) from VTB (VTBRq.L) bank.
UAC Executive Director Valery Bezverkhny said the firm, created by President Vladimir Putin to pool Russian plane makers, would also seek to sell 15 percent of its own shares to state-controlled VTB in a $1.5 billion private placement.
"We are holding talks with VTB on this topic... I do not exclude that we could announce by the end of the year that the deal to buy EADS shares has taken place," he told reporters.
He added that the EADS stake, which he valued at about $1 billion, would be bought for cash but that cash was in short supply at the aviation giant.
"We will look for it," he said, adding that the firm would seek to borrow $5 billion on capital markets by 2012 with a debut rouble bond in 2008.
UAC would probably seek to sell 10 to 15 percent of shares for more than $1 billion in a domestic initial public offering in 2009-2010, he said.
He forecast UAC's value would rise to $10 billion by 2015, from the $3.6 billion valuation given by the state this year.
