Political Miscalculation Scuppers EADS-BAE Merger
AIN Defense Perspective » October 12, 2012
October 12, 2012, 11:55 AM
The proposed 60-40 merger of EADS and BAE Systems was called off after management in both companies miscalculated the reaction of governments and shareholders. Paris and Berlin proved unwilling to give up their stakes in EADS, or reduce them to a degree that was acceptable to the two merging companies, to London, and (perhaps) to Washington. Moreover, BAE’s single biggest shareholder did not support the deal. BAE Systems has now issued a reassuring interim trading statement, but acknowledged that crucial negotiations with Saudi Arabia over the Typhoon (Salam) program have still not been concluded.
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