BERLIN, Oct 10 (Reuters) - Germany denied responsibility forthe failed merger of Airbus parent EADS and Britain'sBAE Systems on Wednesday, but an official acknowledgedthat forming a world defence giant would have createddifficulties in Berlin.
"Germany alone did not block the merger. There were alsoreservations on the French side," said the German official, whocited concern in Berlin about the long-term fate of EADS sitesin Germany and about investors' negative view of the plan.
The German government did not share the strategic view thatthe 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 theworld. But defence is an especially sensitive subject inGermany," said the official.
(Reporting by Andreas Rinke; Writing by Stephen Brown)
((stephen.brown@thomsonreuters.com)(+49 30 2888 5216)(ReutersMessaging: stephen.brown.reuters.com@reuters.net))
Keywords: BAE EADS/BERLIN