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Germany, France May Seek Combined 27 Pct Stake In EADS-BAE: Paper

By Reuters

The planned $45 billion merger aims to create the world’s biggest defence and aerospace company. It would dilute the influence of the French, German and Spanish governments, prompting negotiations over their future roles.

EADS and BAE have said they will offer the governments of France, Germany and Britain a “special share” in the new company, allowing them to block any future hostile takeover, but are determined to prevent further meddling in other management decisions.

The Financial Times Deutschland quoted an EADS spokesman as declining to comment on the report.

“The ball is in the field of the governments. We are waiting now for their views. Then we will decide whether the ideas of the governments allow for a merger that makes business sense or not,” the spokesman was quoted as saying.

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