Controversy swirls around Arab and Russian investors

Controversy continues to cloud EADS as investors outside the traditional NATO alliance scoop up shares of the beaten-down stock.

Following the Russian government's purchase of 5 percent of EADS, the company is finding objections to a possible sale of $1 billion in shares to Arab investors.

"There is an issue about how the French, German and also Spanish governments may react to Dubai having a significant stake in EADS," a London-based equities analyst tells Bloomberg.

A French fund manager agrees: "I can't see Europe letting one of the technological jewels of its industry going to a non-European," said Jerome de Leusse, who helps manage $635 million at HR Gestion in Paris.