Signs of discord first emerged at the weekend when Reuters reported that France appeared to rebuff German proposals for a common position.

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 any meddling in management decisions.

(Additional reporting by Michele Kambas, Adrian Croft, Rhys Jones, Gernot Heller, Mark John, Catherine Bremer; editing by Jason Neely, Bernard Orr)