Airbus parent EADS has confirmed it is in talks with UK defence contractor BAE Systems over a possible merger.
The tie-up would see EADS own 60% and BAE 40% of the new firm.
“Both companies would operate as one group by means of equalisation and other agreements but would be separately listed on their existing exchanges,” said BAE in a statement.
A statement by EADS added: “The possible combination is subject, amongst other things, to the approval of the Board of EADS and there can be no certainty that these discussions will lead to a transaction. A further announcement will be made as appropriate.”
