UK calls for France to reduce its stake in potential BAE and EADS merger
The Defence Secretary said on Monday that France's holding in the proposed merger of BAE Group with EADS must be reduced to single digits in order for the merger to take place.
The Defence Secretary said on Monday that France's holding in the proposed merger of BAE Group with EADS must be reduced to single digits in order for the merger to take place.
Speaking on the BBC, Philip Hammond said: "Our position is that they will have to make a considerable reduction in their stake.
"It has to be below a certain level, putting them on a par with big institutional investors who will also own significant single-digit percentage stakes in the merged group."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
He added that he believed there was no possibility of the merger being completed by Wednesday's deadline of 16:00.
The UK, France and Germany were conducting talks on Monday in the hope of avoiding a disagreement over their respective state holdings in the merged company.
France currently holds a 15% stake in EADS. In the current situation, it could potentially buy out Lagarde, a major shareholder in EADS which is looking to dispose of its remaining 7.5% stake.
A merger of EADS and BAE would create the largest aerospace and defence company in the world.
Both BAE and EADS shares were down on Monday afternoon.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry