The Dubai government's investment fund said on July 5 that it had bought a 3.12 percent stake in EADS, the parent group of European plane maker Airbus.

Based on the current price of shares in the European aerospace giant, the acquisition represents an investment of about EUR600 million.

The stake was acquired by Dubai International Capital's Global Strategic Equities Fund, "allowing it to become one of the largest institutional shareholders in the company," the group said in a statement.

EADS, which is mainly controlled by French and German shareholders, welcomed the deal.

The European Aeronautic Defence and Space Company, with helicopter, space and defense operations, has been hit by problems in the most profitable part of its business - Airbus.

The planemaker, which competes with Boeing in the market for commercial airliners, slumped to a loss last year because of production problems with its star new product, the superjumbo A380.

DIC said it would not seek a seat on the company's board.

"In line with GSEF's investment strategy, neither the fund nor DIC will seek a Board seat or take an active role with EADS but will seek to build a strategic relationship with the EADS management and shareholders," it said.

GSEF said the deal came less than two months after it made a substantial investment in global banking giant HSBC Holdings.