Airbus parent, BAE Systems confirm merger talks

An Airbus A320 takes off on April 30, 2010 from the Airbus headquarters in Toulouse, southwestern France, as unions at planemaker's French sites called on workers to end their strikes today after management offered to reopen pay talks. Since April 26, unions at three Airbus plants organised rotating strikes on assembly lines to press demands for higher pay and oppose moves to shift some production to Germany. AFP PHOTO / PASCAL PAVANI (Photo credit should read PASCAL PAVANI/AFP/Getty Images)

(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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