Last-ditch talks fail to resolve a political impasse between the UK, French and German governments ahead of 5pm takeover deadline The €35bn (£28bn) merger between BAE Systems and EADS is on the brink of collapse after last-ditch talks failed to resolve a political impasse between the UK, French and German governments. Sources close to the talks said the companies’ respective boards are meeting on Wednesday morning to discuss progress in overnight talks involving the three powers that could veto the combination of Britain’s largest defence contractor and the owner of Airbus. One source with knowledge of the discussions said BAE and EADS were still hoping to seek an extension from the UK Takeover Panel ahead of Wednesday’s 5pm deadline to outline the terms of a deal, but the high-level obstacles were becoming insurmountable. “We are still working towards an extension but the signs are not looking good,” said the source.

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