WorldTraveller From Germany, joined Jun 1999, 624 posts, RR: 5 Posted (13 years 8 months 1 week 1 day 8 hours ago) and read 2449 times:
Hi everyone, this might be interesting to all of us since it could change the worlds aviation industry:
"BAe Said in Merger Talks With Boeing
LONDON (Reuters) - Britain's BAe Systems and Seattle-based Boeing Co are holding talks
which could bring about a 29 billion-pound ($46 billion) merger, a UK Sunday newspaper reported.
The Sunday Telegraph, citing industry analysts, said the two aerospace companies were
negotiating quietly ahead of the U.S. elections.
BAe and Boeing already have close ties in building jet trainers and the Harrier jump-jet in its``AV8B'' program for the U.S. marines.
A BAe spokesman told Reuters on Saturday: ``This really is pure speculation. Yes, we have very close working relationship.''
The newspaper said any potential merger could run into
trouble over its operations in civil aviation. BAe is also a
shareholder in one of Boeing's main competitors, the four-nation consortium Airbus Industrie.
An analyst told the newspaper: ``If Boeing and BAe were to
merge you would need to deal with the anti-trust issues on the
Last month, BAe was reported to have won $1.9 billion in civil and military orders from Boeing."
Would Bae step out of its Airbus participation or would they rather seperate their civil and military operations?
DeltaAir From United States of America, joined May 1999, 1094 posts, RR: 0 Reply 1, posted (13 years 8 months 1 week 1 day 6 hours ago) and read 2231 times:
This has been brought up before. In the 1999 Boeing annual report it said that they were in talks with an unknown company about a partnership/merger. The U.S. would probably have no problem with this since they want to hamper Airbus anyway possible. BAe and Boeing have been working well together for awhile. Chances are this will never occur with the laws out there, but if it does then it will be a blow to Airbus.
CX747 From United States of America, joined May 1999, 4435 posts, RR: 5 Reply 2, posted (13 years 8 months 1 week 1 day 6 hours ago) and read 2222 times:
I agree that while it has been discussed, with all of the anti-trust laws etc, it would be hard to get this through the courts. I wonder how the partnership would work? BAe makes the wings for Airbus correct?
"History does not long entrust the care of freedom to the weak or timid." D. Eisenhower
Wingman From Spain, joined May 1999, 2019 posts, RR: 5 Reply 3, posted (13 years 8 months 1 week 1 day 4 hours ago) and read 2221 times:
This would be a straight Boeing acquisition. There's no such thing as a merger between a $60 Billion company and a $20 Billion company. Look at Daimler Chrysler. These two were actually quite close in terms of revenue, but the truth is out. Daimler clearly runs the show.
Boeing wants to strengthen its position against Lockheed as does BAe against EADS. The interesting thing of course is the impact on BAe's Airbus operations. While the merger is still pure speculation, if it did come about it would probably mean the end of BAe's involvement with Airbus. I think this would make EADS very happy even though they'd have to find a new wing supplier. Then again, BAe might spin off its Airbus unit and sell it to EADS. Many scenarios and many potential outcomes.
Wingman From Spain, joined May 1999, 2019 posts, RR: 5 Reply 8, posted (13 years 8 months 1 week 13 hours ago) and read 2182 times:
No. the 60/20 figures are about right for total revenue. Boeing, I think, is still the world #2 in defense behind Lockheed. BAe is #3 or 4 with EADS.
A Boeing acquisition would be a bitter pill for the Brits to swallow. Not because an American company is buying a British company, this happens every day and vice versa. It's just the nature of the defense industry, where govt's are highly protective of their national suppliers. One thing is for sure, a "merger" between these two would strengthen the defense ties between the UK and the US considerably.
Another factor in favor of a BAe/Boeing marriage is the perceived conflict with Airbus. If you read between the lines in all these press releases regarding the privatization it seems that the Brits, French and Germans don't get along so well (surprise surprise). I think EADS wants total control. And what about Finnmecanica? Maybe they join Airbus, buy the wing operation from BAe and move it south. Or would a union with BAe and Boeing be more tantalizing?
NYC Int'l From , joined Dec 1969, posts, RR: Reply 9, posted (13 years 8 months 1 week 9 hours ago) and read 2173 times:
I posted a long time ago(sometime last year) that I think that Boeing should consider selling part of the CAG to Lockheed. It would help to spreadout R&D costs and facilities costs and bring LM's technology into the BA (BA is Boeing's stock symbol, British Airways is BAB) commercial fold while keeping their military and space businesses completly seporate.