Thales and Finmeccanica are declining to comment on rumours that they are discussing the possibility of a merger of their defence electronics businesses. Industry sources say that Thales would welcome a deal with the Italian aerospace manufacturer as it is keen to avoid a takeover by EADS. Late last year, then French finance minister Nicolas Sarkozy revealed his support for a merger of the two companies. Analysts say a deal between Finmeccanica and Thales would make sense as the two companies have similar-sized defence businesses and are both partially state-owned.
Source: Flight International
