Germany to pay €6.6 billion for 50% stake in Leopard tank maker KNDS

BERLIN, Nov 10 (Reuters) - The German government will pay €6.6 billion ($7.41 billion) for its stake in Franco-German defence group KNDS, two people close to the matter told Reuters on Tuesday.

Berlin last week struck a deal with the family owners of KNDS to buy a 50% stake in the maker of Leopard 2 tanks, a government document showed, as it seeks greater influence over critical defence technology.

A €6.6 billion price for a 50% stake is significantly less than the government had previously envisaged for a planned 40% holding. Up to €7.2 billion had been earmarked for that earlier proposed deal in June.

Spiegel magazine first reported the purchase price. Citing parliamentary sources, it said the price was based on an €11.2 billion valuation for KNDS ahead of the company's shelved initial public offering, plus a €1 billion premium.

The German government declined to comment on confidential details of ongoing negotiations, saying only that the planned investment was "an important decision at a time when the security situation in Europe is changing significantly". 

The shareholder families declined to comment. 

According to a finance ministry document prepared for parliament's budget committee, Germany aims to match France's influence in KNDS and avoid being outvoted on key decisions.

Germany would initially acquire the families' stake, with Berlin and Paris planning to reduce their holdings to 40% each through a future initial public offering if market conditions permit.

($1 = 0.8908 euros)

(Reporting by Markus Wacket and Alexander HuebnerWriting by Ludwig ByrgerEditing by David Goodman)