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.

Getting messy this one.

And for that reason - '"I'm out"

Probably a good call I reckon as well Skinny.

Typical - France, Germany clash over EADS-BAE headquarters, sources

BERLIN/LONDON | Tue Oct 2, 2012 3:11pm BST

(Reuters) - France and Germany have collided over the location of the headquarters for a new aerospace giant to be formed from a planned merger of Europe's EADS and Britain's BAE Systems (BAES.L), sources familiar with the matter said on Tuesday.

France wants the group's headquarters to be based in Toulouse, its southwestern aerospace capital where the Airbus planemaking subsidiary of EADS is based, but Germany is pressing for the group to be headquartered outside Munich, they said.

Spotlight on Germany as EADS, BAE inch towards deal

BERLIN/PARIS | Fri Oct 5, 2012 11:45am BST

(Reuters) - EADS and BAE Systems have edged closer towards winning political backing for a $45 billion (27 billion pounds) merger to create the world's biggest arms group amid positive signals from Britain and France, but German misgivings over control is a big obstacle, sources close to the talks said.

A number of potential stumbling blocks have emerged since the proposed tie-up between the Airbus manufacturer and the British defence group was announced last month. These include conflicting political interests in Britain, France and Germany, as well as some shareholders' dissatisfaction with the terms.

BAE Systems plc and EADS N.V.

Termination of talks regarding the
possible merger of BAE Systems and EADS

Following the announcements made by BAE Systems plc ("BAE Systems") and EADS N.V. ("EADS") on 12 September 2012 in relation to a possible combination of their businesses through a dual listed company structure, BAE Systems and EADS announce that they have decided to terminate their discussions.

BAE Systems: Where now for the UK's biggest manufacturer?

Amid recriminations over BAE Systems' failure to secure a tie-up with EADS, one question looms large. What does the UK's biggest industrial company do now?

SocGen's answer to the question:
"The big question is where does the group go from here?
In the press release announcing the termination of talks BAE management say that ‘our business remains strong and financially robust’ and ‘we remain committed to delivering total shareholder value and look to the future with confidence’. But what does this really mean and how will they deliver total shareholder value? The group will most likely revert to the original plan of dealing with defence cuts in the US and UK by reducing the cost base. This is hardly likely to deliver value. We continue to argue that the group should unlock value by demerging or selling off the US business. We note with interest that Mike Turner, the former CEO of BAE, also supports this thesis (FT interview – 8 October 2012), arguing that the US business would ‘realise a significant sum of money’.
How we value the stock - We reiterate our ‘Hold’ recommendation and our 350p target price. BAE must clearly be viewed as ‘in play’ now. Our TP assumes the mid-point of a fundamental valuation of 310p (based on peer ratios) and our take-out price of 390p, including a 25% premium for a bid for the group or parts of the group. Risks to TP: BAE divests some businesses (+); US defence cuts more severe than the 2% p.a. assumed (-). M&A is now clearly a swing factor."

Powered by IST's

Wee bounce here today of 200DMA in at 312.0, won't hang about if proves to be a dead cat bounce.

Stop to entry for risk free trade.

Struggling a wee bit to get over and stay over 320.0 sincerely hope our Dave does the business.

Went back in long @ 304.6 on 19th. Strong resistance @ 320.0 but if it can break through 350.0 could be a good target for year end. Stop to 312.0 to lock in profit if it goes tits up.