PARIS, March 19 (Reuters) - The European Space Agency (ESA) picked Thales Alenia Space and German group OHB as preferred bidders for a new set of weather satellites on Friday, dealing a blow to rival EADS.
The 18-nation agency said it would start talks with Thales Alenia and OHB over the 1.5 billion euro ($2.04 billion) plan to build six third-generation Meteosat satellites and would make a final decision in June.
Thales Alenia is a joint venture between French group Thales and Italy's Finmeccanica.
OHB shares soared 6 percent to 17.68 euros in late afternoon trading while Thales and Finmeccanica posted gains of less than one percent.
First launched in 1977, two earlier generations of Meteosat satellites provide weather information from a geostationary orbit 36,000 km above the earth to 26 nations grouped together in an international organisation known as EUMETSAT.
'The third generation will give an image every 10 minutes. We will have better stability and precision and be able to improve the availability of reliable forecasts by half a day,' said Reynald Seznec, chief executive of Thales Alenia Space.
The award comes two months after OHB dealt an unexpected blow to EADS's Astrium by snatching a European Union order for 14 satellites for the Galileo navigation system.
The Galileo contract was seen as a coup for the small German company which, in 2007, tried jointly with partners to buy three German factories from EADS unit Airbus before talks collapsed due to difficulties financing the deal.
EADS and OHB will continue to compete for orders for the remaining satellites in the Galileo programme, which will probably number between eight and 18.
(Reporting by Matthias Blamont, Tim Hepher; Editing by Sharon Lindores)
($1=.7346 Euro)
((sudip.kargupta@reuters.com; +33 1 49 49 54 52;
Keywords: THALES/OHB
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The 18-nation agency said it would start talks with Thales Alenia and OHB over the 1.5 billion euro ($2.04 billion) plan to build six third-generation Meteosat satellites and would make a final decision in June.
Thales Alenia is a joint venture between French group Thales and Italy's Finmeccanica.
OHB shares soared 6 percent to 17.68 euros in late afternoon trading while Thales and Finmeccanica posted gains of less than one percent.
First launched in 1977, two earlier generations of Meteosat satellites provide weather information from a geostationary orbit 36,000 km above the earth to 26 nations grouped together in an international organisation known as EUMETSAT.
'The third generation will give an image every 10 minutes. We will have better stability and precision and be able to improve the availability of reliable forecasts by half a day,' said Reynald Seznec, chief executive of Thales Alenia Space.
The award comes two months after OHB dealt an unexpected blow to EADS's Astrium by snatching a European Union order for 14 satellites for the Galileo navigation system.
The Galileo contract was seen as a coup for the small German company which, in 2007, tried jointly with partners to buy three German factories from EADS unit Airbus before talks collapsed due to difficulties financing the deal.
EADS and OHB will continue to compete for orders for the remaining satellites in the Galileo programme, which will probably number between eight and 18.
(Reporting by Matthias Blamont, Tim Hepher; Editing by Sharon Lindores)
($1=.7346 Euro)
((sudip.kargupta@reuters.com; +33 1 49 49 54 52;
Keywords: THALES/OHB
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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