BEA-EADS-RIP

Massive political resistance or pure economic theory? Or both?

“From an economic perspective, this should of course be avoided. Pure economic theory would say that the state should stay out of it and leave the market alone.”

“The massive political resistance was ultimately too great to overcome.”

EADS-BAE SSA OK?

BAE Systems has warned it will walk away from its proposed €35bn tie-up with EADS if the deal waters down its special relationship with the Pentagon.

This SSA, specifies that BAE’s senior leadership in the US is made up of Americans, among other things, and has allowed the UK’s biggest defence company to work on many lucrative US national security projects.

“The [US] military would rather have a BAE than a combined BAE-EADS. BAE has been very successful in managing its US relationship. EADS is not in the same bucket, and a combined EADS-BAE is going to be treated a lot more like EADS than BAE.”