Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Monday, October 12, 1998 Published at 11:00 GMT 12:00 UK


Business: The Company File

BAe denies Dasa merger imminent

BAe's Tornado aircraft may become part-German owned

British Aerospace has denied it is on the verge of a merger deal with fellow aviation defence manufacturer Dasa of Germany.

The Financial Times has reported that BAe and Dasa - Daimler-Benz Aerospace - will merge early next year forming a holding company structured to allow other companies to join later.

However, BAe has issued a statement saying it is talking with Dasa but that it is "too early to say whether these discussions will result in definitive proposals".

The companies have been part of ongoing negotiations to form an integrated European defence aircraft group along with French company Aerospatiale and others in the region.

"BAe remains committed to achieving restructuring of the industry in Europe," the statement said.

Major merger delays

However, the privatisation of Aerospatiale by the French government has been the sticking point up to now in plans for a major merger.


[ image: BAe and Dasa still looking to assemble European aircraft giant]
BAe and Dasa still looking to assemble European aircraft giant
Other parties are unhappy that the French Government wants to retain 48% of Aerospatiale and have been applying pressure for full privatisation.

It has been speculated that BAe and Dasa have given up hope of a big one-step merger of the Continent's defence aircraft makers and will take the first step alone.

But the two companies are said to be anxious to avoid alienating other potential partners and want to create the new entity in a way that allows easy entry for other companies.

The Financial Times said a new merged company would be registered in the Netherlands and would combine the businesses of BAe and Dasa with an Aerospatiale representative to be invited onto the board of directors.

Governments and companies in the UK, Germany, France, Spain, Italy and Sweden have been negotiating for more than a year over the creation of a pan-European company to take on the US's Lockheed and Boeing defence giants.

The report saw shares in British Aerospace jump 35p to 391p by midday local time.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents


Relevant Stories

17 Sep 98 | The Company File
BAe profit soars, but shares dive





Internet Links


British Aerospace

Daimler-Benz Aerospace


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles