EADS Warns Against Big State Role In BAE Merger

By Reuters

Deputy Economy Minister Hans-Joachim Otto, who attended the committee hearing, told reporters it was still an open question as to whether the deal would go ahead and said Germany had to protect national security and jobs.

“It is about ‘if’ as well as ‘how’,” said Otto, a member of the pro-business Free Democrats (FDP) who share power with Chancellor Angela Merkel’s conservatives.

“It is a very complicated plan that throws up advantages and disadvantages, risks and chances.”

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

“We know that there is some time pressure but I want to say clearly that rigorousness comes before speed,” said Otto.

He also appeared to take a swipe at France, saying that “too much state influence in EADS in past years has done more harm than good”.

Under Enders, EADS is undergoing a transformation from a company straddling uneasy economic and political European relations and dominated by Airbus to a global group solid enough to compete for business from rising Asian powers.

In talks last weekend, Merkel and French President Francois Hollande discussed the planned tie-up. Hollande said he wanted assurances on jobs, industrial strategy and defence activities.

The French state directly owns 15 percent of EADS with French media group Lagardere also owning a stake.

Berlin holds no direct stake in EADS but had planned to buy part of Daimler’s 15 percent stake through state development bank KfW.

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