German Government Lists Reservations On EADS, BAE Deal

The German government set out reservation for the proposed merger of EADS and BAE Systems. The two companied plans to form a $45 billion aerospace and defense giant could fail to gain traction. This might be because of the disagreement between Paris and Berlin over the degree of government. EADS has warned it will walk away from its hoped-for tie-up with BAE if the new group finds itself subject to excessive state meddling. The government paper sets out German reservations to the merger with national economic and security concerns. The subject of EADS dominated discussions between German Chancellor Angela Merkel and French President Francois Hollande in southern Germany on Saturday, but the pair failed to reach any common decisions.