Germany: No End Near on EADS Stake Talks

Associated Press 11.17.06, 7:31 AM ET | Talks aimed at determining Germany's strategy toward a stake in Airbus parent EADS are unlikely to conclude this month, a government official said Friday.

The government has been in talks for weeks centering on the fate of a stake currently held by DaimlerChrysler AG (nyse: DCX - news - people ). The automaker wants to reduce its holding to 15 percent from 22.5 percent - raising concern over how to preserve a delicate French-German balance at European Aeronautic Defence and Space Co.

"The talks are continuing," government spokesman Thomas Steg told reporters.

Observers should "assume that we will have nothing to announce before the end of November ... that we will take the necessary time and certainly need November for these talks," he added.

The German government had indicated that it was considering buying part of the stake held by DaimlerChrysler through a state-owned bank. However, it has stressed recently that it prefers a solution involving private investors - which it has not identified.

The discussion over the stake comes after Toulouse, France-based Airbus said wiring problems with the flagship A380 superjumbo would delay its delivery by two years and announced a radical restructuring program.