BAE Systems, EADS End Merger Talks

Aerospace and defense giants BAE Systems BA.LN -1.38% PLC and European Aeronautic Defence & Space Co. EAD.FR +5.29% on Wednesday called off their planned merger after the U.K., France and Germany failed to agree on how much influence they should have over the combined entity. The companies made no mention of any plans to revive the merger project at a later stage.
The decision brings to an end several months of increasingly frenetic negotiations on plans by the companies to create the world's biggest defense group by sales.
With BAE Systems and EADS quick to blame politicians for the deal's collapse, singling out intransigence in Berlin in particular, the merger's failure raises fresh questions on European governments' ability to set aside national interests regarding cross-border projects.

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Germany Says EADS-BAE Merger Talks Need More Time

NICOSIA — Talks on a tie-up between aerospace groups EADS and BAE Systems looked set for extra time Sept. 27, after German Defense Minister Thomas de Maiziere and another source said negotiations had some way to go.
“I think we need more time,” de Maiziere told journalists in Nicosia after meeting the day before with his British and French counterparts to discuss the proposal, which would create a giant to rival the U.S. group Boeing.
A source close to the talks told AFP that it looked as though British arms maker BAE Systems and the European Aeronautic Defence and Space Company would ask Britain’s stock market regulator to extend its Oct. 10 deadline.

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