Dubai Fund Eyes Stakes in EADS and German Giants

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Includes: BASFY, EWG, SIEGY
by: Steven Towns

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

EADS stake on $10-15 bln Gulf shopping list [Reuters]

Summary: The Global Strategic Equities Fund of Dubai, managed by Sameer al-Ansari, CEO of Dubai International Capital, says it may make investments in Airbus parent EADS and also in a number of German companies including: Siemens, Deutsche Lufthansa, BASF and MAN. The fund will include investors from Qatar and Abu Dhabi state agencies, and plans to raise $2 billion over the next 3-6 months. Ansari said the fund will leverage the $2b to be able to spend $10b-$15b. Regarding Airbus, Ansari commented, "Share prices are on their knees. Airbus is a major problem. Where there is a problem, there is usually an opportunity." The fund will be conducting due diligence and holding talks with the above mentioned companies, many of which said they welcomed interest from any investor. EADS shares in Paris initially surged on the news and closed higher by 1.13%.
Potentially impacted stocks and ETFs: Siemens (SI), Deutsche Lufthansa (OTCQX:DLAKY), BASF (BF), Boeing (NYSE:BA) • ETF: iShares MSCI Germany Index (NYSEARCA:EWG) -- Siemens is 8.86% of assets, BASF 4.64% and MAN 1.34%

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