Reuters | EADS CEO "seeks veto right" against hostile takeovers
June 1, 2011 § Leave a comment
Reuters, 4:40 a.m. EDT, May 29, 2011
FRANKFURT – The head of Airbus parent EADS is pushing for a veto right to be introduced in the defense industry to prevent hostile takeovers, a German magazine reported on Sunday.
“Its not about handbags or luxury goods, its about an industry with national interest,” Louis Gallois told Focus magazine in a prerelease of an interview to be published on Monday.
“Therefore there must be a veto option against hostile takeovers,” he said, adding that there were ways of giving the governments of France and Germany the respective rights to intervene.
In the field of passenger aircraft construction, Gallois said that he expected tougher competition in future with the number of producers of 150 to 180-seat aircraft rising from two to six by about 2020.
Development costs would mean that mergers between some of the new producers would be inevitable, he added.