Tussle over EADS-BAE merger continues

Victoria
By Victoria October 8, 2012 12:51

Tussle over EADS-BAE merger continues

UK Defence Secretary Philip Hammond has declared that France and Germany must reduce their stakes in defence firm EADS if the UK is to approve the proposed merger with BAE Systems. Concurrently, the German government has threatened to block the merger unless the new company is based in Munich. And at talks on Friday, Germany also requested a written undertaking from France that it would not increase its stake above 9% – that request was denied.
Hammond has stated that the UK government would be willing to use its golden share in BAE, which allows it to block any change in control of the UK-listed company, if their demands aren’t met.
Speaking on BBC Radio 4’s The World This Weekend, Mr Hammond said: “We have made very clear that we do have red lines around the BAE-EADS merger and that if they can’t be satisfied, then we will use our special share to veto the deal.
“It is not, I think, necessary to have no French or German government interest in the company. It is necessary to reduce that stake below the level at which it can control or direct the way the company acts.”

Victoria
By Victoria October 8, 2012 12:51
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