The German government intends to take a direct stake in the European Aeronautic Defence and Space Company (EADS), a German news magazine said Saturday, according to DPA. Der Spiegel said the plan calls for a "golden share," which would enable Berlin to prevent EADS from falling under the control of hostile private investors or foreign state-run funds. A golden share is a nominal share which is able to outvote all other shares in certain specified circumstances, such as a hostile takeover. Germany was forced to take this option because EADS is registered under Dutch law, and Chancellor Angela Merkel's government would not be able to use Germany's foreign trade laws to block any changes in the concern's ownership structure, the magazine said. Berlin has reportedly also been keen to stop the French state having increased influence in the finely-tuned EADS power structure, in which it currently has a direct investment of 15 per cent, with the French media group Lagardere holding an additional 7.5 per cent. The German DaimlerChrysler company holds 15 per cent, while a further 7.5 per cent is is held by a predominantly German consortium of federal state governments and banks - but with no voting rights. Government experts in Berlin hope the German move to take a single share will persuade France to do likewise and sell its 15-per-cent stake in the aerospace giant. Der Spiegel said the golden share option would be limited to involvement in EADS, and not applied to other key sectors such as energy or telecoms. Last month, Merkel called for an EU-wide plan to protect companies in sensitive areas from being taken over by foreign government-run funds. Golden shares have been used in the past by governments of EU member states to allow them to keep controlling voting rights in partially privatized companies. Germany and France discussed such an option for EADS when Merkel met President Nicholas Sarkozy in Toulouse last month, although the practice is frowned upon by the European Commission. In a recent management shake-up, EADS announced it was dropping its joint leadership, with Frenchman Louis Gallois taking sole charge as chief executive and German Tom Enders assuming control of its planemaking subsidiary Airbus.
