BAE Systems holding board meeting over EADS merger plan-source

LONDON, Oct 9 (Reuters) - The board of Britain's BAE Systems

met on Tuesday ahead of a pending deadline in talksover a proposed $45 billion merger with Airbus parent EADS, a source familiar with the talks told Reuters.

The two companies have until 1600 GMT on Wednesday to decidewhether to proceed with, or drop, talks on a merger aimed atcreating the world's largest defence and aerospace company.

(Reporting by Jane Barrett; editing by Rosalba O'Brien)