BAE-EADS merger: Hammond set for Nato talks<\/p>\n
The defence secretary is to discuss a proposed merger between BAE and EADS with his French and German counterparts at a Nato meeting in Brussels later.<\/p>\n
The firms are deciding whether to ask for an extension to Wednesday’s stock exchange deadline for them to announce whether the deal will go ahead.<\/p>\n
On Monday, Philip Hammond said he did not think there was any chance the deal would be settled by the deadline.<\/p>\n
The merger would create a powerful defence and aerospace giant.<\/p>\n
The British and Americans are both insisting that the French and German governments reduce their stakes in EADS.<\/p>\n
At a fringe meeting at the Conservative Party conference in Birmingham on Monday night, a senior BAE Systems executive, Nigel Whitehead, made it clear he shared that goal and understood the need to ensure Britain’s national security interests were protected.<\/p>\n
On Monday, Mr Hammond said he did not think there was any chance of getting a deal done by the stock exchange deadline on Wednesday, but it was up to the two companies to decide whether to ask for an extension.<\/p>\n
Meanwhile, BAE’s largest shareholder, fund manager Invesco Perpetual, said on Monday that it had "significant reservations" about the proposed merger, and "does not understand the strategic logic" of the deal.<\/p>\n
Invesco, which owns 13.3% of BAE, does not appear to be alone. More than 30% of the UK firm’s shareholders have expressed qualms, the Financial Times reported on Tuesday.
\n Defence markets<\/p>\n
Ministers believe there are potential benefits to the merger which could open up new defence markets.<\/p>\n
But unless they are satisfied that national security and the relationship with the US are protected, they could still block the deal.<\/p>\n
The two companies announced they were in discussions over a possible merger on 12 September.<\/p>\n
But since then both BAE and EADS, which is largely controlled by the French and German governments, have denied reports that the talks are in trouble.<\/p>\n
On Friday evening, 45 Conservative MPs wrote to the prime minister voicing concerns over the planned deal, saying it would hand the bulk of Britain’s defence industry to a company which would not safeguard UK interests.<\/p>\n
Earlier, Chancellor George Osborne said the proposed $45bn (\u00a328bn) merger must ensure British security and jobs are preserved.<\/p>\n
EADS boss Tom Enders has previously urged politicians not to interfere in the proposed deal.<\/p>\n
source: www.bbc.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
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