CASA Crash

Questions and concerns about the safety and reliability of EADS CASA aircraft, and about the reliability of EADS as a U.S. defense partner

25 September 2006

Forbes smells a rat in Russian EADS purchase

Forbes magazine is suspicious about the Russian government's recent purchase of 5 percent of EADS. The financial publication thinks the deal is bad for the United States.

Russian President Vladimir Putin reportedly assured Europeans that his intents toward EADS are "not a sign of aggression."

The KGB man is "seeking to allay European fears about his company's muscling in on the Franco-German company EADS as a full strategic partner," and "announced an entente cordiale to study Moscow's role in the aerospace giant," Forbes reports.

"The risk is that Russian state bank Vneshtorgbank, which recently bought a 5% stake in EADS, will try to boost its interest in the company without agreement from its French and German shareholders."

"Putin called the Vneshtorgbank purchase 'a game of the financial markets,' saying the bank bought into EADS after well-publicized delays to the A380 superjumbo program and a management shake-up. However, it is hard to believe Vneshtorgbank bought EADS because the stock was cheap. A more likely explanation is that the bank is acting as a front for the Russia's rusting aviation industry."

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