Friday, October 5, 2012

BAE/EADS Mega Merger 'On Brink Of Collapse'

Fears are growing that the planned 'mega merger' between BAE Systems and EADS is at risk because of the equity demands of European Governments.

Germany's Spiegel magazine, citing Government sources, has claimed that French demands have brought the £38bn deal to the brink of collapse.

It reported that Britain wanted to prevent at all costs any one state owning more than 10% of the merged defence and aerospace company but France was insisting it should hold more than that while obtaining the option to buy even more shares later on.

More follows...