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Russia's Development Bank to sell 5% in EADS to aircraft corp.

RIA Novosti

28/12/2007 14:56 MOSCOW, December 28 (RIA Novosti) - Russia's state-controlled Development Bank said on Friday it planned to sell its recently purchased 5% stake in Europe's Aeronautic Defense and Space Company (EADS) to the Russian aircraft corporation.

Russia's state-run VTB bank said on Thursday it had sold a 5% stake in EADS to another state bank, Russia's Development Bank.

VTB said in a news release on Thursday that the stake equaled 41.056 million shares. According to Vasily Titov, a VTB deputy chairman, the stake was sold at 24.23 euros ($35.5) per share or 994.79 million euros ($1.45 billion).

VTB CEO Andrei Kostin said in early December that the stake could eventually be transferred to the United Aircraft Building Corporation (UABC), but was likely to be initially sold to Russia's Development Bank to bypass administrative barriers to a direct transfer of the stake.

The UABC, which is 90% state owned, incorporates aircraft building companies and state assets engaged in the manufacture, design and sale of military, civilian, transport and unmanned aircraft in a bid to streamline the Russian aviation industry.

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