The Czech government approved an agreement with U.S. aerospace giant Boeing under which it would acquire the company's stake in the state-controlled subsonic jetmaker Aero Vodochody for a symbolic price of 2 koruna, Vice Prime Min

The Czech government on Wednesday approved an agreement with U.S. aerospace giant Boeing under which it would acquire the company's stake in the state-controlled subsonic jetmaker Aero Vodochody for a symbolic price of 2 koruna, or 7 cents, Vice Prime Minister Martin Jahn said. Boeing initially had demanded 1 billion koruna, or $39.1 million, for its 35.29 percent stake in the company, which lost its markets in the former East bloc after the fall of the communist regime in 1989. The government refused that demand. Details of the negotiations that led to the symbolic price were not released. Boeing had been part of the company since 1998, when the Czech government invited Boeing to join it to improve its technological standards and find new markets for its products. At the same time, the government issued $367.7 million in loan guarantees. But the expected business failed to develop, sending the company further into debt. Jahn said the agreement with Boeing should be signed within the next couple of weeks.