EADS Shares Jump on A350 Report

Associated Press | BERLIN GERMANY - - Shares of Airbus parent EADS rose on reports that the company's board will agree to launch a new mid-sized jet to rival Boeing Co.'s 787 Dreamliner at a meeting Friday in Amsterdam.

European Aeronautic Defence and Space Co. stock rose as much as 4.3 percent to euro23.16 (US$30.57) in Paris after the Financial Times said its main shareholders had agreed on how to fund the new plane, which is badly needed to fill a gap in the Airbus product line and stem a loss of business to Chicago-based Boeing (nyse: BA - news - people ) Co.

The Franco-German dominated defense group had pledged to announce a decision by the end of November, but a board meeting scheduled for Nov. 24 was called off amid disagreements over funding for the planned A350 XWB program, expected to cost at least euro8 billion (US$10.5 billion).

The French state owns a 15 percent stake in EADS, while Paris-based Lagardere SCA owns 7.5 percent. The two main French shareholders are balanced by Germany's DaimlerChrysler AG (nyse: DCX - news - people ), which owns a 22.5 percent stake.

EADS officials could not immediately be reached for comment.