Sunday, September 30, 2012

EADS and BAE: Bosses urge political support for merger

Tom Enders

The statement by Ian King and Tom Enders, published in UK, French and German newspapers, come as the firms seek a $45bn (£28bn) tie-up.

The merger would create a company "greater than the sum of its parts", said the chief executives.

They also need political support for the deal as France and Germany are keen to maintain their interests in EADS.

The two bosses argue the combined business would be more resilient, and better able to take advantage of opportunities for growth.

But they also want to replace the current arrangements which give three shareholders - the French state, the media group Lagardere and the German industrial group Daimler - effective control of EADS.

Instead, they say, the new group should be allowed to operate in a normal commercial manner, with all shareholders having the same rights.

However, that may cause friction with Paris and Berlin, with reports suggesting both governments are keen to preserve their influence within the new company.



Source & Image : BBC

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