BAE Systems wins South Korea jet upgrade deal

LONDON | Mon Aug 6, 2012 2:41pm BST

(Reuters) - Britain's BAE Systems (BAES.L) on Monday said its U.S. unit BAE Systems Inc had won a contract to upgrade South Korea's fleet of more than 130 F-16 fighter jets.

BAE said the exact value of the project was still being negotiated but that it is expected to be worth in excess of $1 billion, the lion's share of which will go to Europe's largest defence contractor.

In auction +9.8%

Must be this from earlier :- Exane BNP Paribas reiterates Underperform TP 280p :-)

EADS Said to Explore BAE Combination in Aerospace Revamp

European Aeronautic, Defence & Space Co., the parent of Airbus SAS, is in negotiations with BAE Systems Plc (BA/) about a combination of the two companies, people familiar with the talks said.

The talks are at an advanced stage and the two companies are exploring a transaction that would allow London-based BAE to maintain its independence to sell into the U.S. defense market, said one of the people, who asked not to be identified because the talks are private. A final deal hasn’t been reached, and an agreement may still fall through, the people said.

EADS Chief Executive Officer Tom Enders said today at the Berlin air show that he had no comment. BAE spokespeople declined to comment.
Combining the two companies would create a European counterweight to U.S. aerospace companies including Boeing Co. (BA), Airbus’s main competitor in civil aviation.

Sadly missed this one skinny, good to see it back in form though ie does nowt then explodes on a contract win :O)

Stmnt re Share Price Movement

RESPONSE TO SHARE PRICE MOVEMENT

Further to the recent movement in BAE Systems' share price, BAE Systems plc (BAE Systems) and EADS N.V. (EADS) confirm that they are in discussions regarding a possible combination of their businesses. This potential combination would be implemented through the creation of a dual listed company structure, under which both companies would operate as one group by means of equalisation and other agreements but would be separately listed on their existing exchanges.

The discussions between the parties envisage that BAE Systems shareholders would own 40% and EADS shareholders 60% respectively of the enlarged group. It is contemplated that there would be a unified board and management structure with identical boards and executive committees at each of BAE Systems and EADS.

BAE Systems’ ( BAE ) proposed merger with European aerospace giant EADS is hogging the headlines, but BAE’s shares have this morning given up some of the sharp gains they made ahead of the announcement was published after trading closed yesterday. Maybe traders have digested the proposed deal and realised the complexity of it, which means any resolution will take months.

or may not go ahead.

how about a counter bid from thhe US?

Investors see obstacles, risks to BAE-EADS tie-up

ARIS/BERLIN | Thu Sep 13, 2012 3:09pm BST

(Reuters) - Shares in EADS and Britain's BAE Systems tumbled on Thursday as investors feared that a planned tie-up aimed at creating the world's biggest defence and aerospace group could run up against political and regulatory obstacles.

If talks unveiled late on Wednesday culminate in a deal, BAE shareholders would hold 40 percent and EADS investors 60 percent in a giant with products ranging from Airbus commercial planes to Typhoon warplanes and BAE's Astute-class nuclear-powered submarines.

Update - Investors see obstacles; rivals gain in BAE-EADS tie-up

WASHINGTON/PARIS | Fri Sep 14, 2012 12:07am BST

(Reuters) - Even as it creates the world's biggest aerospace company, the proposed merger of Europe's defence and aviation giants may help U.S. rivals win defence contracts, at least in the short-term, experts said Thursday.

The combination of Airbus parent EADS and Britain's BAE Systems could embroil them in a lengthy complex integration that would limit their ability to win new business.

EADS hopes for quick political decision on BAE plan

BERLIN | Thu Sep 20, 2012 1:35pm BST

(Reuters) - European aerospace group EADS is looking for a quick decision from governments on its plan to merge with British defence company BAE Systems, as France and Germany hold meetings to discuss a common position on the proposed tie-up.

"We are continuing constructive talks and hope for an agreement soon," a spokesman said on Thursday. "All the facts are on the table."

France's president, Francois Hollande, and German Chancellor Angela Merkel will discuss the merger plans at a meeting in Germany this weekend, with advisors due to meet on Thursday and Friday for preparatory talks.

EADS needs this merger....... they must be in trouble......BA. should go with BOEING.

Not exactly hot off the press :- Exclusive: Germany lists reservations on EADS/BAE deal

BERLIN | Mon Sep 24, 2012 3:42pm BST

(Reuters) - Germany has deep reservations about a proposed merger of Airbus parent EADS (EAD.PA) and Britain's BAE Systems (BAES.L), including doubts about whether the combined group would be safe from takeovers and could guarantee jobs.

Germany's doubts, revealed in an economy ministry document, obtained by Reuters on Monday, is the latest sign that the companies' plans to form a $45 billion aerospace and defence giant could fail to gain traction as a result of disagreement between Paris and Berlin over the degree of government say in the future company.

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER

Nil premium merger with Europeans, political oversight and the US looking on. Not a good mix.

Germany thinks more time needed for EADS/BAE talks

NICOSIA | Thu Sep 27, 2012 8:21am BST

(Reuters) - German Defence Minister Thomas de Maiziere said on Thursday he believed more time would be needed beyond an October 10 deadline to discuss a proposed merger between EADS (EAD.PA) and BAE Systems (BAES.L) to create an aerospace and defence giant.

"Perhaps we need more time. It depends on the answers for our questions and so I think we need more time," de Maiziere told reporters in Nicosia, when asked if he was optimistic the October 10 deadline could be met.

They can always apply for an extension to the deadline (as has Chemring/Carlyle t/o), so I can see this dragging on for quite a while yet.

Germany, France may seek combined 27 percent stake in EADS-BAE - report

BERLIN | Fri Sep 28, 2012 6:30am BST

(Reuters) - Germany and France may seek a combined 27 percent stake in a company to be formed from a planned merger of European aerospace group EADS and British defence contractor BAE Systems Plc, but Britain would be opposed, the Financial Times Deutschland said.

The stake would create a shareholder counterweight with the power to block decisions by the management of the new company, the newspaper said, citing sources familiar with the matter, in an article due to appear in its Friday edition.

The move could also prove a deal breaker since EADS boss Tom Enders has repeatedly said he wants to reduce state influence in a combined company and Britain and the United States remain wary of further state involvement.

EADS and BAE: Bosses urge political support for merger

The bosses of BAE Systems and EADS have issued a joint statement seeking support for their proposed merger.

The statement by Ian King and Tom Enders, published in UK, French and German newspapers, come as the firms seek a $45bn (£28bn) tie-up.

The merger would create a company "greater than the sum of its parts", said the chief executives.

They also need political support for the deal as France and Germany are keen to maintain their interests in EADS.

The two bosses argue the combined business would be more resilient, and better able to take advantage of opportunities for growth.

But they also want to replace the current arrangements which give three shareholders - the French state, the media group Lagardere and the German industrial group Daimler - effective control of EADS.

Instead, they say, the new group should be allowed to operate in a normal commercial manner, with all shareholders having the same rights.

However, that may cause friction with Paris and Berlin, with reports suggesting both governments are keen to preserve their influence within the new company.