EADS Warns Against Big State Role In BAE Merger

By Reuters

EADS and BAE have said they will offer the governments of France, Germany and Britain a “golden share” in the new company, which sources say is aimed at preventing a hostile takeover.

However, golden share arrangements in several companies have been legally challenged in the European Union.

Greens lawmaker Kerstin Andreae, a member of Germany’s economy committee, said the golden share issue was unresolved.

“More questions were left open than answered. There are disagreements between the government and Tom Enders on the question of the valuation of the golden share which could not be cleared up,” Andreae said after the briefing by Enders.

While Otto described a planned 60-40 valuation ratio for EADS and BAE respectively, as looking “disadvantageous” at a first glance, Enders said it was fair. A row over the ownership ratio erupted on Tuesday.

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