* Nations ready to accept 2 bln eur cost increase -ministry* Nations refuse to discuss financial, technical matters
* Statement leaves uncertainty over key loan definition
By Sabine Siebold
Defense News ~ BERLIN, Feb 19 (Reuters) - Buyer nations resubmitted a 3.5 billion euro bailout plan for the A400M military transporter plane on Friday and told Airbus parent EADS (EAD.PA) it was their "final" offer, a German defence ministry spokesman said.
The spokesman said the terms of the rescue package were unchanged from a previous offer of aid for the troubled European troop plane and suggested buyers had snubbed efforts by EADS to keep negotiating on some of the finer details of the rescue plan.
Spiralling costs and delays have threatened Europe's largest defence project and left EADS with a 5.2 billion euro loss.
Fearing damage to its core airliner business, the Airbus parent is negotiating a rescue plan with buyers representing Britain, France, Germany, Spain, Belgium, Luxembourg and Turkey.
The German spokesman said the seven NATO partners were ready to accept a cost increase of 2 billion euros for the transporter and to offer export guarantees of 1.5 billion euros.
However, they were rejecting further negotiations on financial or technical matters, at least for now.
"The buyer nations put forward their final offer on February 19th," the spokesman said.
"They are sticking to the position they took on February 15th. They accept price increases of 2 billion euros and said they were prepared to offer export guarantees of 1.5 billion euros."
EADS declined comment.
Sources familiar with the matter said on Thursday EADS had agreed a core package of 3.5 billion euros of support with buyers but that it had asked to renegotiate a price inflation clause and defer installation of some complex military kit.
An official from one buyer nation said the purpose of the latest letter was to send EADS a reminder that its offer was the last one on the table following months of talks. EADS is under pressure to accept and end suspense over the future of 10,000 jobs.
The German statement did not say how the 1.5 billion euro guarantees would be structured -- another key point holding up completion of EADS results due to be published on March 9.
Even with the proposed support, EADS faces losses of 1.7 billion euros on the multinational project, on top of 2.4 billion euros already provisioned in its accounts.
This could rise to 3.2 billion euros if guarantees are classified as a loan, forcing it to provision for extra losses.
In France, an aide to defence minister Herve Morin said the country remained optimistic of a long-awaited final deal.
"There are discussions. We let them take their course and are not commenting for now. We are fairly optimistic," he added.
Germany and France, with 60 and 50 aircraft respectively, are the largest customers for the propeller-powered A400M, which first flew in December and is due to be delivered in 2012.
Buyers have ordered a total of 180 planes to support global operations and fill a gap between the Lockheed Martin (LMT.N) C-130 Hercules and the larger jet-powered Boeing (BA.N) C-17.
(Additional reporting by Tim Hepher, Gerard Bon; editing by John Stonestreet)
The spokesman said the terms of the rescue package were unchanged from a previous offer of aid for the troubled European troop plane and suggested buyers had snubbed efforts by EADS to keep negotiating on some of the finer details of the rescue plan.
Spiralling costs and delays have threatened Europe's largest defence project and left EADS with a 5.2 billion euro loss.
Fearing damage to its core airliner business, the Airbus parent is negotiating a rescue plan with buyers representing Britain, France, Germany, Spain, Belgium, Luxembourg and Turkey.
The German spokesman said the seven NATO partners were ready to accept a cost increase of 2 billion euros for the transporter and to offer export guarantees of 1.5 billion euros.
However, they were rejecting further negotiations on financial or technical matters, at least for now.
"The buyer nations put forward their final offer on February 19th," the spokesman said.
"They are sticking to the position they took on February 15th. They accept price increases of 2 billion euros and said they were prepared to offer export guarantees of 1.5 billion euros."
EADS declined comment.
Sources familiar with the matter said on Thursday EADS had agreed a core package of 3.5 billion euros of support with buyers but that it had asked to renegotiate a price inflation clause and defer installation of some complex military kit.
An official from one buyer nation said the purpose of the latest letter was to send EADS a reminder that its offer was the last one on the table following months of talks. EADS is under pressure to accept and end suspense over the future of 10,000 jobs.
The German statement did not say how the 1.5 billion euro guarantees would be structured -- another key point holding up completion of EADS results due to be published on March 9.
Even with the proposed support, EADS faces losses of 1.7 billion euros on the multinational project, on top of 2.4 billion euros already provisioned in its accounts.
This could rise to 3.2 billion euros if guarantees are classified as a loan, forcing it to provision for extra losses.
In France, an aide to defence minister Herve Morin said the country remained optimistic of a long-awaited final deal.
"There are discussions. We let them take their course and are not commenting for now. We are fairly optimistic," he added.
Germany and France, with 60 and 50 aircraft respectively, are the largest customers for the propeller-powered A400M, which first flew in December and is due to be delivered in 2012.
Buyers have ordered a total of 180 planes to support global operations and fill a gap between the Lockheed Martin (LMT.N) C-130 Hercules and the larger jet-powered Boeing (BA.N) C-17.
(Additional reporting by Tim Hepher, Gerard Bon; editing by John Stonestreet)
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