BREAKING NEWS

BREAKING NEWS

EADS-BAE Systems merger hits turbulence

 Comments
Now Reading :

EADS-BAE Systems merger hits turbulence

EADS-BAE Systems merger hits turbulence
Text size Aa Aa

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.