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BAE Systems-EADS Merger Talks Terminated: The potential merger of BAE Systems and EADS is now dead after the companies announced on Oct. 10 they've ended their discussions. "BAE Systems and EADS believe that the merger was based on a sound industrial logic" and "would have delivered tangible benefits to all stakeholders," stated the companies in their joint release. However, "discussions with the relevant governments had not reached a point where both companies could fully disclose the benefits and detailed business case for this merger," states the release. In fact, "it has become clear that the interests of the parties' government stakeholders cannot be adequately reconciled," states the release. Neither BAE Systems nor EADS named names, but Reuters reported that German government resistance proved to be the stumbling block. "We are obviously disappointed that we were unable to reach an acceptable agreement with our various government stakeholders," said Ian King, BAE Systems' chief executive. He added that the merger would have been a "unique opportunity" for both companies "to create a world-leading aerospace, defense, and security group." EADS Chief Executive Tom Enders said: "It is, of course, a pity we didn't succeed, but I'm glad we tried."