Wires

France must have option to buy Lagardere stake in EADS-BAE deal-source

PARIS, Oct 8 (Reuters) - France must be given the option ofbuying shares from media group Lagardere as part of aproposed merger between EADS and BAE , a Frenchgovernment source said on Monday.

"If France does not even have the possibility to considerbuying the stake which Lagardere wants to sell, then for us itis not doable," the source said.

He added that he did not think an agreement could be reachedon the planned mega-merger of the European aerospace group andBritish defence company by an October 10, adding that Paris hadno problem in having an equal stake with Berlin as part of thedeal.

Britain has called for a cap to be placed on existing stateshareholdings to avoid too much government influence in theproposed venture.

(Reporting By Emmanuel Jarry; writing by John Irish; Editing byChristian Plumb)

((john.irish@thomsonreuters.com)(0033-1 49 49 53 42)(ReutersMessaging: john.irish.thomsonreuters.com@reuters.net))

Keywords: EADS BAE/LAGARDERE