Daimler, a major shareholder in EADS, is unhappy about the proposed valuation of a deal between the European aerospace company and British defence company BAE Systems, a person familiar with the matter said Sept. 21.

“The reaction of the capital markets has clearly shown that the economic valuation of the deal is being seen critically - Daimler sees it that way as well,” a person familiar with the situation told Reuters.

Daimler declined to comment.

The view in Stuttgart, where Daimler is based, emerged as EADS and BAE continue to hash out details for a tie-up, and on the eve of a major political summit on Saturday when German and French leaders scrutinise plans to form the aerospace and defence giant.

Currently EADS is set to get a stake of around 60 percent in a newly combined company, a proportion Daimler is not happy with, the source said.

Daimler will make its views about the insufficient valuation known to EADS, the source said.

The merger being discussed by EADS and BAE Systems would create the world’s biggest aerospace and defence company with combined sales of $93 billion for products ranging from Airbus jetliners to Typhoon warplanes and nuclear-powered submarines.

Under British stock market rules, EADS and BAE have until Oct. 10 to announce whether they will go ahead with further talks.

EADS is currently controlled by a partnership of German carmaker Daimler, French media firm Lagardere and the French state.