EADS: France and UK 'in favour' of BAE merger

The French and UK governments were in favour of merging BAE and EADS after solutions were found to all the issues raised by both administrations, an EADS spokesman told the Reuters news agency.

Although the German government was opposed to deal, it failed to provide a "firm reason" why, the spokesman added.

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BAE merger deal called off

Major defence firms BAE and EADS are blaming politicians for the collapse of their £25bn merger deal.