BERLIN (AFP) - Berlin and Paris are committed to maintaining the current balance of power at the European Aeronautic, Defence and Space Company, the French and German economy ministers said, amid speculation France is keen on a tie-up between EADS and French defence technology firm Thales.
"If a (merger) proposals were put forward, the French and German sides would talk about it first. But what ever happens, we're very keen on maintaining the balance in our partnership" within EADS, French Economy Minister Nicolas Sarkozy told a joint news conference with his German counterpart Wolfgang Clement.
And Clement said: "The balance of power (within the group) is a key condition for cooperation."
The comments were made amid speculation that Sarkozy was pushing for a tie-up between EADS and Thales, which would effectively shift the balance of power within EADS towards the French.
The two ministers were talking after a meeting of a special Franco-German working group set up to explore possibilities for industrial cooperation between the two countries.
Seeking to calm German fears about a possible shift in the balance of power, Sarkozy insisted that he had no knowledge of any concrete merger project between EADS and Thales.
"To be frank, there was very little talk about this issue. But when something was said it was to say that neither of the companies has been approached on the matter."
Press reports said that Paris was wanting to sell Thales, in which it holds a stake of 31.3 percent, to EADS, in a move that would create a new company with combined sales of 40 billion euros (52 billion dollars), equal in size to Boeing.
But since France and Germany currently own 30 percent apiece of EADS, such a move would give France a bigger say in the merged company.
Furthermore, Thales is a Franco-British group and so a "tie-up between Thales and EADS would pose a diplomatic problem with the British," a source close to the matter said.
11/16/2004 - 17:41 GMT - AFP