BERLIN, Sept 24 France and Germany agree that a
plan to merge EADS and BAE Systems provides no
complete guarantee against takeovers, according to a German
economy ministry paper obtained by Reuters on Monday.
"A common position with France is being sought," said the
paper, which sets out German reservations about the merger plan
for a German parliamentary committee.
The paper said guarantees provided under the proposed merger
on future location of factories were not reliable, underscoring
fears about possible job losses if the plan goes ahead.
The merger plan says that states are to have no consultation
rights in operational decisions taken by the merged company, the
German document said.
The ministry sees the relative value ratio of European
aerospace group EADS and British contractor BAE Systems as
"closer to" 70:30 rather than the 60:40 ratio seen by the
companies, the paper said.
The two companies announced earlier this month they were in
advanced talks over a mega-merger to create an industrial giant,
in what would be the biggest shake-up in Europe's aerospace and
defence sector in more than a decade.