News Summary: $45 billion aerospace deal grounded
AEROSPACE MERGER GROUNDED: A European attempt to assemble an aerospace giant to rival America's Boeing Co. collapsed Wednesday. In the end, it was the reluctance of governments in Germany, Britain and France that led to the demise of the $45 billion deal that would have combined Britain's BAE Systems, with EADS NV, of Germany and France.
INTERNATIONAL TURBULENCE: Government officials were immediately concerned about the location and scale of any job cuts. Questions were also raised about what the deal would do to the delicate balance that Germany and France have achieved in EADS after years of bickering. The British government was wary about what the prospective deal would do to BAE's big business dealings with the U.S. Some of the largest shareholders questioned the deal as well.
BIG, BIG BUSINESS: The merger would have created a company with annual sales of $90 billion. Both companies insisted that a tie-up was sought not out of necessity, but with the hope of leapfrogging Boeing to the number one spot in the industry. Boeing last year had sales of about $69 billion.