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defence deal, cash is priority Stocks  |  Mergers & Acquisitions * Airbus could cut production * Banks criticised for withholding credit (Adds U.S fab four live tickets . analyst comment) By Tim Hepher and John Bowker NEWPORT, Wales, Jan 13 (Reuters) – European aerospace groupEADS said on Tuesday it had abandoned a “significant” defenceacquisition in the United States to conserve cash as it propsup jetliner sales to crisis-hit airlines fab four . The Airbus parent company is under pressure to offer creditfinancing to airlines to ensure they honour contracts and alsofaces new provisions for delays to its A400M militaryairlifter the fab four beatles tribute . Airbus and rival Boeing Co (BA.N) saw new aircraft businessroughly halve last year after a record 2007 as airlines enduredfirst a record spike in oil prices, then a slump in passengerand cargo demand the fab four . [ID:nN07521602] [ID:nN09303414] “We want to protect cash so we are focusing and reducingour investment expenses,” EADS (EAD.PA) Chief Executive LouisGallois told an annual news conference. “We need this cash to protect the company and sometimessupport our suppliers, in particular when they are in commonwith the auto industry.” Gallois declined to say what cash level EADS would findcomfortable, but revealed that, even while closing out 2008with a 2 billion euro net increase in the bank from 2007, ithad cancelled an acquisition in the United States to savecash.

“We were on the way to sending the cheque and we pulled outat the last minute fab four live review . It was a unanimous position by the board Fab Four Live tickets – goldstar .” EADS was forced to abandon the purchase of a U.S militarydrones designer in 2007 after a split on its board beatles influence . Gallois declined to name the latest target, but said it hadrecently won a Pentagon contract rain beatles . Another executive said theprice tag on the aborted deal was in the region of $1 billion rain a tribute to the beatles .

EADS last year bought emergency control room specialistPlantCML for $350 million and targeted at least one otheracquisition in 2008 to boost its presence in the UnitedStates the fab four live . It showed interest in defence electronics firm DRS beforeDRS was bought by Italian company Finmecanica SpA (SIFI.MI) the beatles biography . “EADS has shown a marked interest in homeland securitycompanies,” said Phil Finnegan, director of corporate analysisat the Washington-based consultancy, Teal Group the beatles influence . “In addition to homeland security and defence electronics,EADS over the past several years has been interested intraining and simulation, looking at properties in that area.” Sector valuations have fallen from heady levels since thefinancial crisis began, but Finnegan said Europeanmanufacturers still seemed willing to pay a premium for access to the U.S.market, which accounts for half the world’s defence spending beatles biography . EADS reported a cash surplus of some 9 billion euros ($12.1billion) at the end of last year as 2008 revenue rose to around42 billion euros from 39 billion the year before. But its order intake fell to around 90 billion euros from137 billion in 2007, reflecting a decline in new business asairlines battle through the downturn.

EADS shares rose 1.8 percent to 13.46 euros, slightlyoutperforming the French market . PRODUCTION CUTS? Gallois said Airbus, which recently shelved plans toincrease production of single-aisle jets, did not excludecutting output to adjust production to expected deliveries beatles tribute . Both Boeing and Airbus have said are ready to increasefinancing as airlines seek alternatives to floundering creditmarkets and most analysts foresee cuts in production beatles tribute band . “We are not worried about the backlog of orders, but thethreat is to have delivery slots empty in 2009,” Gallois said . He called on banks to play their part in helping theeconomy and suggested some were refusing to provide credit evenwhen plane contracts were backed by government exportagencies. “European governments are making great efforts to stabilisethe financial industry,” he said Fab Four Live – bestofvegas . “Now banks have to make greatefforts on their side to keep the economy afloat …

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