With time running out in merger talks to form the world’s biggest aerospace and defence firm, the main shareholder in one of the potential partners has released a long and scathing list of objections to the union.
Negotiations have been underway to marry EADS and BAE Systems in a 35-billion euro deal.
Britain, Germany and France have been jockeying over how much of the new company would be owned by each country.
BAE’s main stock-holder Invesco Perpetual has released what some analysts have called a comprehensive demolition of the logic behind the deal.
Among eight categories of objections, Invesco said said that BAE is a strong business with a distinctive positions in the global defence market, and good stand-alone prospects.
It also felt the level of state shareholding in the new group would heavily impair its prospects.
The UK stock market has imposed a deadline of Wednesday afternoon for BAE Systems and EADS to clarify merger plans.