BAE to audit Airbus

Miffed by the valuation of its 20% stake in Airbus by NM Rothschild, BAE is to order a formal audit of Airbus before deciding if it sells its stake. The value of the stake made by Rothschild comes in at $US3.5bn – which is about a third less than BAE and the market expected.

BAEs institutional investors have indicated that they feel the price is too low, but will accede to BAE selling its stake if the audit concurs with Rothschild’s valuation.

BAE is desperate to sell its stake so it can focus on the defence market; primarily it is focusing on the US market.