Details emerge on EADS, BAE Systems tie up

France and Germany are reported to have agreed to negotiate with the United Kingdom to both secure nine per cent stakes in a merged EADS-BAE aerospace giant, Germany’s Der Spiegel reported on Sunday.

“Berlin and Paris have agreed on a common strategy regarding the planned merger between EADS and BAE. The two governments each want to hold 9 per cent of the new group,” the newspaper said, citing sources close to the negotiations.

Die Welt also reported on Friday that the German government is insisting on an equal shareholding with France in the merged company, which would create a $45 billion  aerospace giant.

The French government currently holds a 15 per cent stake in the European Aeronautic Defence and Space Company, and French industrial and media group Lagardere holds another 7.5 per cent.

The German government is reported ready to buy Daimler’s 15 per cent holding and the 7.5 per cent stake held by the public-private consortium Dedalus to maintain Franco-German parity.

The two companies have until October 10 to either formally announce that they intend to combine their activities or shelve the project.

 

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