Reuters - Video

Edition: US | UK | IN | CN | JP

Video

EADS-BAE deal talks collapse

Wednesday, October 10, 2012 - 03:10

Oct. 10 - EADS and BAE Systems will not extend their tie-up talks, shelving the world's biggest arms merger, for now. Though other potential partners could be waiting in the wings, says IHS Jane's David Reeths.

▲ Hide Transcript

View Transcript

The 45 billion dollar Paris based mega magic cannot have says BAE and EDS cool off their tap tools. BAE says the interests of the government's involved than those of the two companies could not be result percent -- Johnny. I only US old -- statements scheme the plan would create the world's biggest defence group. One sticking point to sportsmen in -- insistence. And the mad -- headquarters would be in Munich. Well let's get tattooed David -- now to rectify aerospace defense at my age as James David thanks so much for joining ask. I can't see -- question now is what next for BEE yet. Spots it's really been quite today. I think what would you were likely to see is it be and EADS will continue to discuss at a very low level potential for some kind of a tie in the future. But at this point I'd say unless something changes. Within the German government's position that's not likely to happen it's. To me quite surprising that it was the German government that scuttle this deal it appears now. Once we find out what those those reasons were I think. Will be able to understand what the likelihood of any potential -- occurring in the future. What will be but at this point it doesn't look -- likely. Sure the genie out of the box on that and -- have to -- -- -- -- -- -- But I'll tell you that it is -- BA right now I recognize that I've just sends a message to the world that. I I thought that going forward with EDS would be better than density back and going for with -- path that I previously been taking. And that doesn't necessarily mean that BA thought their future wasn't very bright but it does mean that they do see significant risk in their position going forward it's at. I wouldn't be surprised that they take a somewhat less conservative approach going forward in a look at other options. Talking about other options of who you're looking out for now to -- sure I think -- There's potential for several other options out there but I really do look -- European defense industrial landscape and I can't see any other partners or potential partners. It wouldn't have some of the same political issues that really scuttle this deal. I know a lot of people have been looking into the into the US for potential partner and large firms like general dynamics or not the governor even Raytheon have been mentioned in some of the reports. But unfortunately. Those firms already have significant presence in the United States -- why they -- out under a lot of scrutiny. They did have come under a lot of scrutiny and it would really negate the advantage that be had with EDS and providing access to the US market. Is being -- now looking really vulnerable is at a target. I don't think they necessarily look very vulnerable but they certainly looked like thirty. Looking to make some significant moves and -- -- I'm sure -- have discussed it with other potential partners and a look at other ways they could potentially strengthen their business. Great thank you very much that was David -- phone not IH has -- we'll have more on this. Deal that did not take place we've been waiting for that seventeen hundreds deadline of course BE NEA DS have now called off magic talks. That places I'm managing a long and thinks is switches.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

EADS-BAE deal talks collapse

Wednesday, October 10, 2012 - 03:10