=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/12/01/financial/= f054904S75.DTL --------------------------------------------------------------------- Friday, December 1, 2006 (AP) EADS Stock Up on Report of A350 Progress By LAURENCE FROST, AP Business Writer (12-01) 08:10 PST PARIS, France (AP) -- The board of Airbus parent EADS was meeting Friday as its shares soared = on a report that directors had agreed to approve the launch of a planned mid-sized plane to rival Boeing's 787. Shares of European Aeronautic Defence and Space Co. rose as much as 5.7 percent to 23.48 euros ($30.99) in Paris after the Financial Times said its main shareholders had agreed on how to fund the new A350 XWB, which is badly needed to fill a gap in the Airbus product line and stem a loss of business to Chicago-based Boeing Co. Two people close to the European defense group's main shareholders, who spoke on condition of anonymity because the discussions were confidential, confirmed widespread reports that a board meeting was taking place Friday in Amsterdam. An EADS spokesman declined to comment. Franco-German dominated EADS had pledged to announce a decision on the long-range airliner by the end of November, but a board meeting scheduled for Nov. 24 was called off amid disagreements over funding for the program. Citing anonymous sources, the Financial Times said EADS directors agreed late Thursday that the company should fund about 6 billion euros ($8 billion) of the program independently, with a further 4 billion euros ($5 billion) either provided directly or guaranteed by the French, German, Spanish and British governments. Some of the state-guaranteed cash could be raised in a bond issue, the newspaper said. The European Union and United States are already embroiled in World Trade Organization litigation over subsidies to Airbus and Boeing, and a decision to draw on state guarantees or launch aid for the A350 XWB — repayable only if the program turns a profit — could exacerbate the dispute. 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, which owns a 22.5 percent stake. = ---------------------------------------------------------------------- Copyright 2006 AP