PARIS/BERLIN, Oct 9 (Reuters) - Merger talks between EADS
and BAE Systems have hit a new obstacle overGermany's reluctance to endorse an Anglo-French scheme forhandling state shareholdings, several sources familiar with thematter said on Tuesday.
"Tonight, it is blocked," one source said, asking not to benamed.
The German government declined comment. EADS was not immediately available for comment.
The two companies are now considered unlikely to issue astatement before Wednesday's market opening on whether they planto seek an extension to a deadline which expires at 1600 GMT,the sources said.
A statement could be issued later in the day, two sourcessaid.
Earlier, Britain and France had reported progress on effortsto resolve conflicts over state shareholdings and Britain saidthe companies would issue an early Wednesday statement.
(Reporting by Tim Hepher, Matthias Blamont, Michelle Martin,Andrea Shalal-Esa)
Keywords: EADS BAE/OBSTACLE