Henley Standard Property
HOME

Date:

Order your copy Advertise with us! HENLEY PAGES
Delivering the news from Henley on Thames and South Oxfordshire for over 100 years
  News     Sport    Celebrity   What's On Regulars Community Info Henley Standard TV Lifestyle Property Jobs Classifieds Gallery Trade
                               Follow us    Follow us    Newsfeed Search the Henley Standard  
Invesco's role in collapsed air deal
Published 11/10/12



A MULTI-BILLION pound merger that was criticised by one of Henley’s biggest employers has collapsed.

Defence giant BAE Systems, of which Henley investment firm Invesco Perpetual is the largest shareholder, was hoping to complete the £27.9 billion deal with the European Defence and Space Company yesterday.

But with the British, French and German governments unable to agree on their stake in the new company, and amid strategic concerns from investors, BAE scrapped the plans at the 11th hour.

It is believed that German Chancellor Angela Merkel, who is standing for election next year, was also uncomfortable with the deal.

This week, Invesco issued a statement criticising the merger and warning that it could have dire consequences for investors.

The company, which has a stake of 13.3 per cent in BAE, feared the deal could jeopardise the security firm’s “unique and privileged position” within the US market.

It was also worried that the new company, which the French and German governments wanted a high degree of control over, would be driven by political considerations.

Invesco said it had “significant reservations regarding both the proposal and its impact on long-term value for BAE shareholders”.

It said BAE was performing far better on its own than EADS, offering “superior cash generation” and more than double the dividends for investors.

In the run-up to yesterday’s deadline, there was disagreement between the governments over the details of the merger.

The Germans made surprise demands for the company’s headquarters to be based in Munich. It was originally expected that they would be split between Farnborough, where the military wing would be housed, and a civil aviation hub in Toulouse.

There was also opposition from the British government. Forty-five Conservative MPs wrote to David Cameron urging him not to let France or Germany have a stake If the deal had gone through, it would have been the world’s biggest arms and aviation merger.

In the final two days of the crisis, Invesco said it was entering discussions with both the board of BAE and other shareholders.

It holds 432,329,428 shares in BAE Systems and 3,846,899 in EADS, of which the majority are held by Invesco Perpetual Henley. The remainder are held by parent company Invesco.


Published 11/10/12

MOST POPULAR
Browns to close after a quarter century trading
Halloween and Bonfire Night: Where to go
College plan to build campus on playing fields
High winds cause road closures
Woman launches campaign for equality in sport
Farewell to those magnificent flowers
Driver injured in road accident
Martin Clunes films new series in Nettlebed
LATEST BUSINESS NEWS HEADLINES
Oratory withdraw public access to gym
Farewell to those magnificent flowers
Browns to close after 25 years
Woman launches campaign for equality in sport
Helping hand for jobless
Health food shop award
Party at Cafe Rouge
Latest Video View more from   Henley Standard TV
ADVERTISE WITH US
LATEST SPORTS HEADLINES
Rugby academy unaffected by Wasps' move
Record number tackle Frieth Hilly
Robinson shines as Hawks march on
Red Kites put on five-star display
Hosts hit back in style to claim win
Top Videos
 
Most Popular
 
 
 
 
Higgs Group
HIGGS GROUP
Tel: 01491 419400
www.higgsgroup.co.uk
HENLEY PAGES
Tel: 01491 419419
www.henleypages.com
HIGGS PRINTING & DESIGN
Tel: 01491 419429
www.higgsprinting.co.uk
HIGGS OFFICE SUPPLIES
Tel: 01491 419499
www.higgsofficesupplies.co.uk
HENLEY LIFE MAGAZINE
Tel: 01491 419449
www.henleylife.co.uk
HIGGS GROUP, Caxton House, 1 Station Road, Henley on Thames, Oxfordshire, RG9 1AD.

Cookie Policy | Copyright and Terms | Competition Rules | Contact Us | Advertise with us | Site Map
© Higgs & Co (Printers) Limited 2013  |  Registered in England number 1418717