MoD's Trident fears spark pledge by BAE
Amid fears over what BAE Systems' planned mega-merger with EADS would mean for Trident, the defence giant is understood to be prepared to ring-fence the nuclear submarine programme if the £30bn deal goes ahead.
After it emerged that the Ministry of Defence has demanded guarantees over Trident, a source close to the company said the ring-fencing of the BAE-built program in Cumbria would be a priority.
While Trident – alongside its cyber security arm Detica – is believed to be one of a number of issues the coalition is concerned over, BAE has been piling the pressure on the government. The Independent on Sunday revealed it has been privately warning a collapse of the merger with the owner of Airbus would result in thousands of job losses in this country.
The proposed merger, which would result in the world's largest defence and aerospace group, is likely to have major political repercussions for a number of countries.
Britain holds a 'golden share' in BAE, meaning it is able to stand in the way of foreign shareholders taking control of 15 per cent or more, while both France and Germany have a 22.5 per cent stake in aerospace giant EADS.
While BAE is understood to be confident it will get the go-ahead from governments, reports from Germany yesterday claimed the deal could fall foul of European law. The issue is the plan to issue 'golden shares' to the British, French and German governments, according to Spiegel.
When news of the potential merger emerged last week, shares in BAE initially shot up 7 per cent before falling back amid some fears that the proposed deal could be valuing the comp-any too cheaply. Espirito Santo Investment Bank claimed the talks "highlight the cheap valuation of BAE".
In Paris, EADS' share price has fallen sharply since the announcement.
- 2 Top Gear: Jodie Kidd, Philip Glenister and Guy Martin 'in advanced talks' to join show
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 4 University student in court for allegedly covering housemates' food in window cleaner and spit
In defence of liberal democracy
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
Andy McSmith's Sketch: Feisty audience is the real star of an enlightening show
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...