EADS declined to comment.

The impasse stems from government concerns over retaining jobs during hard times for Europe’s economy as well as coveted technology needed to drive growth.

INVESTOR CONCERNS

The moves also threaten efforts to remove duplication from legacy EADS operations and are likely to draw protest from investors concerned about scant cost-savings offered by the merger.

Until June this year, EADS had its headquarters in both Paris and Munich as a result of power-sharing agreements put in place when EADS was set up. Staff in Munich are said to be particularly concerned about jobs as a result of the merger.

With a deadline of October 10 for a deal approaching, EADS and BAE are also trying to reach agreement with European governments on jobs and research investment while trying to woo skeptical investors.

In remarks to an audience of engineers in London on Monday, Enders said job cuts were not the main purpose of the merger, which was based on expectations of growth.

“This will not go down in history as the deal with the most cost synergies,” he said.