5th Jul 2006 10:06
BAE SYSTEMS PLC05 July 2006 5 July 2006 Not for release, publication or distribution in or into the United States, Canada, Australia, Japan or the Republic of Ireland. BAE SYSTEMS PLC SERVES NOTICE OF ITS INTENTION TO CONDUCT AN AUDIT OF AIRBUS BAE Systems plc ("BAE Systems") announces that, in accordance with the terms ofthe shareholders' agreement dated 11 July 2001 between BAE Systems, EuropeanAeronautic Defence and Space Company EADS N.V. ("EADS") and Airbus S.A.S. ("Airbus") (the "Shareholders' Agreement"), BAE Systems today served notice onAirbus of its intention to undertake an audit of the Airbus Group (the "Audit"). On 13 June 2006, Airbus announced that the delivery schedule for the A380programme would undergo a delay of six or seven months due to production ramp-upissues and EADS announced an anticipated annual EBIT shortfall from 2007 to 2010as a result of this delay of approximately €500 million. On 14 June 2006, BAE Systems announced that it did not believe any credible orserious assessment of the likely financial impact of the delay in A380deliveries could be made at that time. On 2 July 2006, an independent expert determined the price payable by EADS inrelation to the proposed disposal of BAE Systems' interest in Airbus (the "Proposed Disposal"). BAE Systems expects that the Audit will assist its Board in assessing whether ornot to recommend that its shareholders vote in favour of the Proposed Disposal.BAE Systems is required to give Airbus two weeks notice of its intention toundertake an audit. The Audit is not anticipated to be completed before the endof August 2006. A circular setting out the Board's recommendation to shareholders and furtherdetails regarding the Proposed Disposal will be sent to shareholders after theBoard has had the opportunity to review the outcome of the Audit. Issued by:BAE Systems plcLondon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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