Thales to become satellite giant in setback to EADS

0 Comments | AFP, April, 2006

PARIS (AFP) — The French electronics company Thales took off as a global satellite group, joining forces with telecommunications firm Alcatel while shunning European aerospace giant EADS.

The European Aeronautic Defence and Space company was left hanging, with two major shareholders announcing they would reduce their stakes to refocus on core activities of auto manufacturing and publishing.

Shares in Thales and EADS fell sharply, while Alcatel surged in a market that was slightly stronger overall.

"Thales fell back because the operation with Alcatel ends speculation over a purchase" of the electronics group by EADS, a sector analyst in Paris commented.

The two key players in Europe's consolidating satellite sector, Thales and EADS' Astrium unit, will...