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EADS-BAE merger on brink of collapse -media report

FRANKFURT, Oct 5 (Reuters) - French demands have brought the planned mega-merger between European aerospace groups EADS

and BAE Systems to the brink of collapse, Germany's Spiegel Online reported on Friday.

Citing government sources, the online magazine wrote that Britain wanted to prevent at all costs any one state owning more than 10 percent of the merged company -- a demand that France flouted with its plans to hold more than that while obtaining the option to buy even more shares later on.

(Reporting By Christiaan Hetzner)

((christiaan.hetzner@thomsonreuters.com)(+49 - 69 - 7565 1249)(Reuters Messaging: christiaan.hetzner.thomsonreuters.com@reuters.net))

Keywords: EADS BAE/GOVERNMENTS