Aerospace titan BAE Systems is firm in its decision of walking away from its planned merger with another aerospace firm EADS unless the former will works as a standard company without any political intervention. Furthermore, BAE kept on insisting that the combined entity’s defense enterprise would have to be dependent on UK.
EADS management indicated it would be enthusiastic to avoid political business, but it stays far from absolute that Paris, specifically, and Berlin would be in agreement to give up their strategic ventures. The deal’s uncertainty and the lack of clearness on possible cost-savings and strategy brought about deep investor skepticism. EADS stocks dropped 10.2 per cent to €25.2 and BAE declined by 7.3 per cent to €337.1p.
Several key BAE stakeholders manifested their concerns over the merger. They warned they would turn into sellers if BAE was not able to
clarify the long-standing dividend policy and the degree of French and German influence over the merged entity.
Certain individuals close to BAE said the company would give up on the talk if it did not make a company with a balanced board that is free of any political intervention. BAE and some experts view the French government as the biggest possible hindrance in the deal’s path.