Britain’s cross-party parliamentary defence committee on Monday launched an inquiry into the possible merger of UK defence group BAE Systems and European aerospace company EADS.
The influential committee said it would take evidence during October and November, to establish the impact any merger would have on the protection of British sovereign capabilities, defence exports, relationships with the United States and European alies and the likely consequence on jobs and trade.
ARTICLE: EADS May Offer Daimler Convertible Bond
EADS said on Sunday it could offer its shareholder Daimler a way to reduce its stake in the aerospace and defence company via a convertible bond.
Daimler has been looking for a way to sell part of its stake in EADS and aims to agree a deal with German state development bank KfW by the end of the year.
But talks have been complicated by the Sept. 12 announcement of merger negotiations between Airbus parent EADS and Britain’s BAE Systems, which have sent EADS shares about 13 percent lower so far.