Germany raises doubts about BAE-EADS deal

 

The £30bn mega-merger between the UK defence giant BAE Systems and the European aerospace group EADS faced opposition yesterday from German politicians who warned that getting the go-ahead for the proposed tie-up was not guaranteed.

After Tom Enders, the chief executive of the Airbus owner EADS, appeared before a committee of the German parliament, Germany's Deputy Economy Minister, Hans-Joachim Otto, cautioned that it was not certain the deal would get approved.

"It is about 'if' as well as 'how'," he said, adding that it was "a very complicated plan that throws up advantages and disadvantages, risks and chances".

Kerstin Andreae, a member of Germany's Green Party who is also on the committee, said there were "disagreements" between the government and EADS.

"More questions were left open than answered," she said. "There are disagreements between the government and Tom Enders on the question of the valuation of the golden share which could not be cleared up".

The proposed merger requires approval from Germany, the UK, France and the US. The first three have all been offered golden shares as part of the deal, which would allow them to stand in the way of hostile takeover attempts, although there are fears this could be against European law.

Speaking after his appearance, Mr Enders called for a loosening of government controls. "We want to create a company that is internationally much more successful, that draws new investors," he said, adding that there were "many examples to prove that companies in this sector and of this size should not necessarily be subject to state involvement".

His stance appeared to be supported by Mr Otto, who said that if EADS and BAE did merge the resulting company should be subject to less political influence than had been the case with EADS. BAE also wants France and Germany to give up their right to nominate board members. However, France is believed to be keen to maintain an influence over decision-making.

Mr Enders also sought to draw a line under speculation that EADS investors could end up with more than 60 per cent of the combined entity, arguing that the mooted 60-40 ratio with BAE shareholders was fair. The two companies must unveil detailed proposals for the merger by 10 October, although they could ask the Takeover Panel for a extension.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory