PARIS (Thomson Financial) - Talks between France and Germany over the future of EADS have been focusing on ways to end the dual governance structure, and an announcement should be made on July 16 when Nicolas Sarkozy and Angela Merkel meet in Toulouse, Les Echos reported without indicating sources.
According to the paper, no decision has yet been taken on the form of the changes, but the most frequently-mentioned scenario would see Louis Gallois retain his post as CEO while Tom Enders steps down.
The paper cited a source close to the matter as saying that the French government wants to unify the operational management of the group, while another source said the government has reached an agreement in principle with the main French private shareholder Lagardere.
The main difficulty now, however, is to define a new organisational structure that will ensure Franco-German parity, Les Echos said.
According to a source close to the matter, "The solution that needs to be found is no longer Franco-French, but Franco-German."
The paper went on to say that the French government has temporarily sidelined plans to modify EADS' shareholders' pact, as any moves would have required unanimous approval from the board of directors.
Indeed, both Lagardere and DaimlerChrysler are opposed to any dilution of their holding, while the German government has clearly ruled out taking a stake in EADS' capital, Les Echos said.
vicky.buffery@thomson.com
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