Airbus parent, BAE Systems confirm merger talks

(Pascal Pavani/AFP/Getty Images, file)

(CBS/AP) LONDON - Defense contractor BAE Systems PLC (BAESF) and European aerospace giant EADS NV (EADSF) say they are in talks about combining their businesses.

In a statement to the London Stock Exchange on Wednesday, the companies said the propsed merger would unite the companies' boards and management but they would continue to be listed separately on stock exchanges.

It said BAE Systems shareholders would own 40 percent and EADS shareholders 60 percent of the enlarged group.

Stock in BAE Systems was up more than 11 percent in afternoon trading.

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