Investors of the European Aeronautic, Defense and Space Co or EADS gave their approval for the purchase of fifteen percent shareholdings at the price of Eur50.00 per share. The move is aimed to boost the company's value after disposal of block holdings.
The shareholders met in Amsterdam and approved the resolution for the buyback program. The resolution also instituted many changes in its structure since it was established back in 2000. The projected overall cost is Eur6.2 billion or US$8 billion based on the terms. According to CEO Tom Enders, the plan is to put a spending cap to one third of the Eur12.3 billion cash available.
The changes would see the exit of Lagardere SCA and Daimler AG from the board. It also allows the free float of shares and curb the government intervention in operational affairs for products such as Airbus SAS commercial aircraft, helicopters, planes, defense and missile electronics.
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