Attempts to create a European giant to rival Boeingof the US collapsed yesterday, amid investor anger at the handling of a multibillion-euro deal that would have transformed the world’s defence and aerospace industry.
Government officials in London, Paris and Berlin blamed each other for not backing the €36bn tie-up between BAE Systems, the UK’s defence champion, and EADS, Europe’s biggest civil aerospace group, while investors accused BAE of having a muddled strategy that threatened shareholder value.
There were suggestions that Angela Merkel, Germany’s chancellor, vetoed the deal on Tuesday morning.
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