EADS shares rise, BAE Systems falls on report deal talks collapse

LONDON, Oct 9 (Reuters) - Shares in EADS rosesharply and those in BAE Systems fell on Tuesday, withthree traders attributing the move to a report by German newsagency DPA that merger talks between the two companies hadcollapsed.

The DPA report cited sources close to the negotiations.

A source close to EADS told Reuters that the DPA report waswrong.

EADS shares rose as high as 26.85 euros a share beforeceding most of their gains to trade up 0.2 percent on the day at26.30 euros by 1143 GMT. Shares in BAE, meanwhile, were down 1percent at 323.1 pence, off their earlier low of 320.9 pence.

(Reporting by London markets team)

((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052;Reuters Messaging: Reuters Messaging:simon.jessop.thomsonreuters.com@reuters.net))