BAE has warned it will abandon its proposed €35B merger with EADS if it has to change its...

|About: BAE Systems PLC (BAESF)|By:, SA News Editor

BAE has warned it will abandon its proposed €35B merger with EADS if it has to change its Special Security Arrangement (SSA) with the U.S. to "look more like that of EADS," which is stricter, the FT reports. However, the U.S. may not allow BAE to keep its SSA if France and Germany maintain their stakes in the new company. The SSA has allowed BAE to become the Pentagon's most trusted foreign supplier.