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Germany rejects sole responsibility for EADS/BAE merger failure

BERLIN, Oct 10 (Reuters) - Germany denied responsibility for the failed merger of Airbus parent EADS and Britain's BAE Systems on Wednesday, but an official acknowledged that forming a world defence giant would have created difficulties in Berlin.

"Germany alone did not block the merger. There were also reservations on the French side," said the German official, who cited concern in Berlin about the long-term fate of EADS sites in Germany and about investors' negative view of the plan.

The German government did not share the strategic view that the merged company would have better chances on the U.S. market, said the official, who spoke on condition of anonymity.

"This would have created the biggest defence company in the world. But defence is an especially sensitive subject in Germany," said the official.

(Reporting by Andreas Rinke; Writing by Stephen Brown)

((stephen.brown@thomsonreuters.com)(+49 30 2888 5216)(Reuters Messaging: stephen.brown.reuters.com@reuters.net))

Keywords: BAE EADS/BERLIN