Shares of BAE and EADS Fall on Concerns About Merger
Shares of BAE Systems and EADS, the owner of Airbus, fell Thursday, a day after the two aerospace companies said they were in merger talks, as a key shareholder in EADS said it wanted to examine the deal closely before giving its consent.
BAE and EADS, whose full name is European Aeronautic Defense & Space, said Wednesday they were in talks to create an industry leader that would overtake Boeing. Airbus’s American rival, in sales and contend with defense cutbacks in Europe and the United States.
The French conglomerate Lagardère, which owns 7.5 percent of EADS, said Thursday it “intends to ensure that all consequences associated” with the proposed merger “are taken into consideration in determining the terms and conditions of the proposed transaction before it consents to the deal.”