BAe and Dasa repeat merger aim

SHARES IN British Aerospace and Daimler-Benz rose sharply yesterday after the two companies restated their aim to create a merged defence company next year. This would be the first step in the creation of a pan- European defence and aerospace holding company including French, Italian, Spanish and Swedish arms suppliers as well.

Shares in BAe closed 10 per cent higher, while shares in Daimler, the parent company of Daimler-Benz Aerospace (Dasa), rose 16 per cent. BAe said it had been talking with Dasa about the restructuring of Europe's defence industry, but it was too early to say whether the discussions would result in "definitive proposals". A Dasa spokesman said the two companies "hope to come to terms pretty soon".

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