KPMG Wins Key Valuation of Airbus Stake
It appears that KPMG has won a surprise high profile valuation engagement for
valuing BAE System's 20% stake in Airbus. BAE will be exercising its put option
to sell its share to the 80% holder EADS, which would make EADS the sole
shareowner of Airbus.
BAE was apparently dissatisfied with a Pound 2.75 billion valuation calculated
by Rotschilds.
This puts KPMG in a sticky spot of justifying a higher valuation for its client
BAE but being also fair to other stakeholders in a high profile situation.
Given that there are only a few other aircraft makers in the world, such as
Boeing and Embraer, the list of key peers is quite limited. The outcome of the
valuation, expected in about a month will be very interesting.
We will watch to see if they actually beat the Rotschild valuation, and how
everyone will react to this new number.