Proposed BAE-EADS merger called off

Associated Press
FILE In this file photo dated Monday July 14, 2008 visitors talk and wander around a Mantis unmanned aircraft  by BAE Systems PLC during a presentation at the opening day of the Farnborough aerospace show, in Farnborough, England.  Defense and aerospace companies BAE Systems PLC and EADS have hours to agree on whether to go ahead with a proposed merger that has faced opposition from Britain, France and Germany. British-based defence contractor BAE Systems and Franco-German EADS, the parent of Airbus, must reach an agreement before 1600 GMT Wednesday Oct. 10, 2012 on whether they would ask regulators for more time to finalize their plans, or abandon the deal. The proposed mega-merger, which would create a global aerospace and defense company, has been fraught with difficulties because of political objections from governments in the U.K., France and Germany. The governments, which have stakes in the companies, have fought over control of the proposed merger. All three countries must approve the deal for it to go ahead. (AP Photo/Lefteris Pitarakis)

View gallery

LONDON (AP) — British defense contractor BAE Systems PLC and its European counterpart EADS NV on Wednesday abandoned a proposed merger that would have created a global defense and aerospace giant.

The companies said they "decided to terminate their discussions" over the proposed merger because of conflicting interests between the British, French and German governments.

"It has become clear that the interests of the parties' government stakeholders cannot be adequately reconciled with each other or with the objectives that BAE Systems and EADS established for the merger," the companies said in a statement.

The proposed merger with EADS, the parent of Airbus, would have created a global aerospace and defense company that would leapfrog U.S.-based Boeing Co.

The heads of both companies expressed disappointment at the outcome.

"It is, of course, a pity we didn't succeed but I'm glad we tried," said EADS chief executive Tom Enders.

"We are obviously disappointed that we were unable to reach an acceptable agreement with our various government stakeholders. We believe the merger presented a unique opportunity for BAE Systems and EADS to combine two world class and complementary businesses to create a world leading aerospace, defense and security group," BAE chief Ian King said.

The companies faced a Wednesday deadline on whether to go ahead with the merger, ask for more time or call it off.

From the start, the deal had been fraught with difficulties because of political objections from the governments of the U.K., France and Germany. All three must approve the deal for it to go ahead.

France is the only government that owns a direct stake in either of the two companies, but Germany has long held sway in EADS via shares held by automaker Daimler and private and public banks. Berlin was arguing for a slice of its own in the new company in order to maintain that historic role.

But Britain and the companies' executives were wary about handing out too many shares to governments. If the new entity was perceived as state-owned, it could affect its ability to vie for contracts in the U.S. and Asia, EADS CEO Tom Enders told the German newspaper Bild in an interview that the company posted on its website.

EADS shares jumped on the news that the merger was off, trading 3.7 percent higher in early afternoon in Paris. BAE shares recovered earlier losses to trade flat.

Sorry you didn't like this comment. Please provide a reason below.

Are you sure?
Rating failed. Try again.
Request failed. Try again.
We will promote constructive and witty comments to the top, so everyone sees them!
Sorry, we can’t load comments right now. Try again.

    Recommended for You

    • Woman Accidentally 'Steals' Subaru, Brings it Back With Apology Note and Gas Money

      Oops. 'Sorry I stole your car,' read the note inside Erin Hatzi's Subaru.

      Inside Edition
    • NASA's carved pumpkins put everyone else's to shame

      That jack-o'-lantern you worked on all weekend doesn't look like much compared to the feats of engineering these NASA Jet Propulsion Laboratory engineers put into their annual pumpkin carving contest. This year's entrants brought it and there's video and photos to prove it.  Devoted NASA JPL mechanical engineer Aaron Yazzie was diligent in sharing inventive takes on the traditional Halloween decoration, much to our viewing pleasure. SEE ALSO: Carve your own 'Overwatch' pumpkins with these spooky stencils First up, the NASASMAP pumpkin. (That's NASA's Soil Moisture Active Passive mission, for the uninitiated.) A @NASASMAP pumpkin #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 Next up is a pumpkin holding real samples from Mars, glowing green and featuring a spacey take on the famous Forest Gump line. Mars Sample Return Pumpkin #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 Popular Netflix show Stranger Things made it into the competition. A @Stranger_Things #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 Now the pumpkins get more intricate.  Martian Sample Return Mission #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 And now the engineers are just showing off. A "Happy 80th Birthday @NASAJPL " #NASAPumpkin with a birthday card to sign. (JPL was founded on Halloween 1936) — Aaron Yazzie (@YazzieSays) October 27, 2016 This one went off-season and pulled out a barbecue — and totally made it work. BBQ #NASAPumpkin on a hand made mini Flotron! — Aaron Yazzie (@YazzieSays) October 27, 2016 Things got political during the competition with Hillary Clinton and Donald Trump pumpkins.  Political Commentary #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 And then things got fun with Pac-Man. PAC-MAN #NASAPumpkin — Aaron Yazzie (@YazzieSays) October 27, 2016 Yazzie unofficially named his group's pumpkin the winner. You can judge for yourself. And best for last, my group's entry: Leonardo, the Mars Copter #NASAPumpkin! — Aaron Yazzie (@YazzieSays) October 27, 2016 You've got until Monday to attempt to make your pumpkin look half as good as all these. 

    • Volkswagen introduces new American-built 7-passenger SUV

      DETROIT (AP) — Volkswagen took a big step toward recovering from its emissions-cheating scandal by introducing a new seven-passenger SUV.

      Associated Press
    • Philippine mayor, nine bodyguards killed in police shoot-out

      A Philippine mayor accused of drug trafficking was killed along with nine bodyguards in a shoot-out with police Friday, authorities said, hours after President Rodrigo Duterte threatened to intensify his crackdown on crime. Samsudin Dimaukom, the mayor of the southern town of Saudi Ampatuan, was one of more than 150 local government officials, judges and police identified by Duterte earlier this year as being involved in the illegal drug trade. The deadly crime war has claimed more than 3,800 lives and drawn criticism from the United States, the United Nations and international rights groups who have accused police of summarily executing suspects.

    • New FBI inquiry reinjects Clinton emails into 2016 race

      MANCHESTER, N.H. (AP) — The FBI will investigate whether there is classified information in newly discovered emails related to its probe of Hillary Clinton's private server, reinjecting one of the most toxic political issues into the presidential campaign less than two weeks before Election Day.

      Associated Press 37 min ago
    • Woman writes bad Yelp review because of a bodega cat, and the internet destroys her

      Don't mess with the bodega cats. Walk into any corner store a.k.a bodega in New York City, and you'll find a variety of household goods, beer, probably a deli and almost definitely a resident cat. The cats keep the rats and mice away and in return, they get to hang out inside and take naps on the chip shelf. @georgeferrer A photo posted by Bodega Cats (@bodegacatsofinstagram) on Oct 11, 2016 at 4:54am PDT Usually New Yorkers tend to ignore that bodega cats may be a health code violation, because most people would prefer to see cats hanging around than rats. But recently, one Yelper decided to break the golden bodega cat rule, and gave S.K. Deli Market in the East Village a 1 star review after noticing her bodega had a cat chilling on a stack of Budweisers. Big mistake. Reviewer Diana D, who has since deleted her post, claimed she had ordered from the bodega before, but decided to pick up her food instead of getting it delivered. That's when she noticed the adorable cat protecting its store. You gotta be a miserable gentrifying ass bitch to yelp about the bodega cat — سنكامي (@SynKami) October 24, 2016 "Besides being allergic, I wonder what the health code say(s) about this?" Diana asked in her review.  Twitter user SynKami took a screen grab of the review and shared it to his followers, harshly calling out Diana  for complaining about the bodega cat. Twitter promptly erupted, and the tweet has racked up more than 7,800 retweets at the time of writing. @SynKami @asherahresearch does she realize the cat is there to keep the rats away. Dumbazz — jaja (@JaJasTweets) October 24, 2016 @SynKami tbh, I don't trust a bodega that doesn't have a cat — Carlos LaBestia (@Arturo_Ulises) October 25, 2016 S.K. Deli Market's Yelp page was flooded with positive reviews on Wednesday, supporting both the deli and cat, who's name is Ciao Bella, according to one Yelper.   According to a piece published in the New York Times about the controversy over bodega cats, fines could cost the bodega $300 to $2,000. However, a fine for rodent feces found in a store can also land a bodega with a $300 fine. "It’s hard for bodega owners because they’re not supposed to have a cat, but they’re also not supposed to have rats,” José Fernández, the president of the Bodega Association of the United States, told the New York Times.

    • Jury acquits leaders of Oregon standoff of federal charges

      PORTLAND, Ore. (AP) — A jury delivered an extraordinary blow to the government Thursday in a long-running battle over the use of public lands when it acquitted all seven defendants involved in the armed occupation of a national wildlife refuge in rural southeastern Oregon.

      Associated Press
    • Clearing the ‘jungle’ migrant camp in Calais, France (57 photos)

      They made their way to the squalid camp in the French port of Calais from Afghanistan, Sudan, Ethiopia and beyond, some fleeing war, others poverty, all dreaming of a better life in Britain. Some made it across the English Channel. Those who did not, thousands of them, spent months in the temporary society they’d built, sleeping in tents or shacks. As it grew, their sprawling camp became emblematic of Europe’s migrant crisis. French authorities cleared them out in just three days this week, the evacuation hastened when some of them set fire to parts of the camp. More than 5,000 were taken to centers elsewhere in France where they can get help applying for asylum. Britain took in some who already have family living there. And the rest said they plan to stay in the area, taking their chances and hoping they can still make it to Britain. (AP) See more news-related photo galleries and follow us on Yahoo News Photo Tumblr .

      Yahoo News Photo Staff
    • China to unveil its J-20 stealth fighter at air show

      China will unveil its new generation J-20 stealth fighter jet at an air show next week, the air force said on Friday, the first public showing of a warplane China hopes will narrow the military gap with the United States. The ability to project air power is key for China as it takes on a more assertive stance on territorial disputes with neighbors in the East China and South China seas. The Pentagon has said the fifth generation stealth aircraft China is developing, the J-20 and the J-31, are necessary for China's air force to evolve from a mostly territorial force to one that can carry out both offensive and defensive operations.

    • Elon Musk has a crazy plan to make Tesla vehicles more affordable

      Over the past few months, we've heard rumblings about Tesla's efforts to eventually introduce a Tesla Network, effectively a ridesharing service operated by self-driving Tesla vehicles. During a Tesla event last week, where Tesla introduced hardware capable of supporting fully autonomous driving, the company noted that using a self-driving Tesla for ridesharing "will only be permissible on the Tesla Network, details of which will be released next year." Clearly, Tesla has its eyes on competing with the likes of Uber and Lyft, but the company isn't exactly looking to get rich off such a plan. On the contrary, it wants to put all of that ridesharing money into the pockets of Tesla drivers themselves. DON'T MISS:  We have some bad news about next year’s iPhone 8 When Musk was asked about the Tesla Network and how the rumored initiative fits into the company's overall vision of the future, Musk articulated that fully autonomous Tesla vehicles will be able to generate ridesharing income for owners while they don't need it. Consequently, this will help offset the overall purchase price of the car itself. "This would be something that would be a significant offset on the cost of ownership of a car and then a revenue generator for Tesla as well," Musk explained. "Obviously, the majority of the economics would go to the owner of the car. Sometimes, it's been characterized as Tesla versus Uber or Lyft or something like that. It's not Tesla versus Uber; it's the people versus Uber." It's an interesting strategy to say the least, but one has to wonder when this plan might actually become a reality. Additionally, it will be interesting to see if Tesla owners are even open to the idea of sending their expensive car out on the road to drive itself and random strangers around town.  

      BGR News
    • Mom Pictured Holding Syringe While Allegedly Overdosing With Infant Son in Car: Cops

      In the picture, the woman's head is tilted back and her hand loosely grips a syringe.

      Inside Edition
    • Colorado officer gets 16 years in prison for police shooting

      LA JUNTA, Colo. (AP) — A former small town Colorado police officer was sentenced Thursday to 16 years in prison for fatally shooting a man in the back after he followed the man into his mother's home, court officials said.

      Associated Press
    • Philippines says Chinese vessels have left disputed shoal

      By Manuel Mogato MANILA (Reuters) - Chinese ships are no longer at the disputed Scarborough Shoal in the South China Sea and Philippine boats can resume fishing, the Philippine defence minister said on Friday, calling the Chinese departure a "welcome development". Philippine fishermen can access the shoal unimpeded for the first time in four years, Defence Secretary Delfin Lorenzana said, capping off a startling turnaround in ties since his country rattled China by challenging its maritime claims at an international tribunal. The departure of the Chinese coast guard ships comes after President Rodrigo Duterte's high-profile visit to Beijing and his repeated requests for China to end its blockade of the shoal, a tranquil lagoon rich in fish stocks.

      Reuters 16 min ago
    • Mike Pence is safe after plane skids off LaGuardia runway (14 photos)

      Indiana Gov. Mike Pence, Donald Trump's running mate, was unharmed when the plane he was riding in slid off the runway while landing on a rain-soaked Thursday evening at New York City's LaGuardia Airport, briefly prompting its closure. Turbulent weather was credited for a bumpy approach that caused the Boeing 737 Eastern Airlines charter flight's rough landing. The Associated Press reported that the pilot slammed on the brakes, and passengers reported smelling rubber after the jet came to a halt. Several on board noted a fishtail effect after the plane made contact with the runway. (Yahoo News) See FULL STORY by Everett Starling / Yahoo News See more news-related photo galleries and follow us on Yahoo News Photo Tumblr .  

      Yahoo News Photo Staff
    • Leaked memo reveals details of 'Bill Clinton Inc.'

      A hacked memo released by WikiLeaks has shed light on how Bill Clinton profited -- to the tune of tens of millions of dollars -- from work channeled to him by an aide who also worked for the family's charitable foundation. In the 2011 memo, Clinton aide Douglas Band said he personally provided the former president with more than 50 million dollars in "for profit" activities while he was leader of the foundation. The latest disclosures have added to a drip-drip of WikiLeaks revelations plaguing Hillary Clinton in the final stretch of her run for the White House as the Democratic nominee.

    • Wisconsin student accused of assaulting 4 more women

      MADISON, Wis. (AP) — A University of Wisconsin-Madison student already accused of sexually assaulting a woman in his apartment this month has been charged with sexually assaulting four other women since early 2015.

      Associated Press
    • 2017 Lincoln Continental

      Like the brand itself, a work in progress.

      Car and Driver
    • IS trickling out of Mosul as losses mount: US general

      Islamic State group fighters are trickling out of Iraq's Mosul as the jihadists suffer heavy casualties, the general overseeing American military operations in the region told AFP on Thursday. Army General Joseph Votel, head of the US military's Central Command, said groups of half a dozen or fewer IS fighters have been seen slipping out of the city as US-backed Iraqi and Kurdish peshmerga forces close in. Some of them dump weapons and try to look like civilians, making it hard for coalition drones and planes to track them, Votel said, but some presumably are headed toward Raqa, the IS group's Syria stronghold.

    • Killer's mother assisting in lawsuit against 2 gun dealers

      PORTLAND, Ore. (AP) — Three years ago a 30-year-old mentally ill man fatally shot a California woman as she admired a scenic view on the Oregon coast, using one of three weapons acquired by the killer's mother from gun dealers.

      Associated Press
    • James Packer Is ‘Definitely Not Getting Back Together’ with Mariah Carey as Their Split Turns Ugly

      Mariah Carey and James Packer‘s breakup is turning into a battle of he-said she-said