Airbus A400M partners reach financing deal -source

Defense News ~ PARIS, Feb 23 (Reuters) - European governments have struck an outline deal with Airbus parent EADS (EAD.PA) over a rescue package worth 3.5 billion euros ($4.76 billion) to save the A400M military transporter, a source familiar with the matter said on Tuesday.
The agreement will result in a political declaration of support expected to be issued by the seven countries, including non-EU Turkey, on the sidelines of a meeting of European Union defence ministers in Spain on Thursday, the source said.
"The basis of an agreement has been reached," the source told Reuters following lengthy talks to save a project threatened by overspending and employing 10,000 staff.
Under the deal, the group of purchasing nations -- which also include Britain, France, Germany, Belgium, Luxembourg and Spain -- have agreed to a roughly 10 percent increase in the price of each plane for a total boost of 2 billion euros.
A further 1.5 billion will be made available in such a way that EADS can set this sum, as well as the core aid of 2 billion, against A400M losses and thus reduce the amount of provisions it needs to take in 2009 results, the source said.
New charges are expected to be less than 2 billion euros.
The two sides have also agreed to hold further discussions later on a disputed price inflation clause, the source said.
The source declined to be identified because the discussions remain confidential ahead of any public announcement.
A spokesman for aerospace group EADS declined to comment. ($1=.7361 Euro)
(Reporting by Tim Hepher; editing by James Mackenzie)