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EADS's merger talks with BAE come as defense budgets are being slashed, and executives and U.S....

EADS's merger talks with BAE come as defense budgets are being slashed, and executives and U.S. government officials expect further consolidation in the industry, particularly among smaller and medium-sized players. It might even involve the bigger players: the WSJ speculates that Boeing (BA) could rekindle talks with BAE or carry out a long-rumored tie-up with Northrop Grumman (NOC).
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