European Aeronautic, Defence & Space Co. Chief Executive Officer Tom Enders said he underestimated political opposition to a combination with BAE Systems Plc and vowed to review strategy after talks collapsed.
European Aeronautic, Defence & Space Co. is under siege from investors about its proposed merger with BAE Systems Plc, with major shareholder Lagardere SCA calling the combination’s terms “unsatisfactory.”
BAE Systems Plc Chief Financial Officer Peter Lynas is favorite to hold the same post at the enlarged group should a merger with European Aeronautic, Defence & Space Co. succeed, people familiar with the discussions said.
Lagardere SCA dropped the most in three months in Paris trading after saying it will record losses of about 900 million euros ($1.2 billion) to reflect the lower value of its sports-marketing and pay-television units.
Lagardere SCA is targeting the fourth quarter for an initial sale of its shares in pay-TV operator Canal Plus France and has hired banks to manage the transaction, said two people with direct knowledge of the plan.