EADS pushing for veto in defence industry to prevent hostile takeovers

EADS CEO Louis Gallois is lobbying European nations to introduce a veto right in the defence industry. Mr Gallois stated that there "must be a veto option against hostile takeovers" as the defence industry is part of the "national interest".

Last week, EADS confirmed its financial guidance for 2011, forecasting core profit will match 2010 levels of approximately EUR1.3 billion.

Mr Gallois has also forecast that competition in forecast there would be six companies producing 150-180 seat aircraft by 2020. Airbus and Boeing hold a duopoly in the market, with Bombardier’s 110-150 seat CSeries due to debut in 2013, followed by COMAC’s 160-190 seat C919 and Irkut’s 160-220 seat MS-21 in 2016. Embraer is expected to make a decision on the future of its commercial aircraft development in the next 12-18 months, but has already confirmed that one of its options include a larger successor to its E-jets family, which already seats up to 115 passengers.

The London Stock Exchange was closed on 30-May-2011.

Selected Aerospace daily share price movements (% change): 30-May-2011