ANALYSTS have thrown their weight behind the BAE/EADS deal, with Standard & Poor’s rating the combined body A. This is a higher rating than the standalone firms.
“We believe that should the transaction proceed, the business risk profile of the combined entity would benefit from stronger diversification and earnings stability,” said S&P credit analyst Abigail Klimovich.
Moody’s also reaffirmed the merger, adding it would result in improved “business and geographic diversification”.
Broker Redburn yesterday upgraded EADS to a “buy” rating, labelling the stock “a win-win situation”, even if the merger didn’t get the green light.
Exane BNP Paribas, calling the merger “the deal of the decade”, added that the deal had a 60 to 70 per cent chance of going through.
Talks regarding the merger are still taking place at a high level within the European governments involved, and are thought to be progressing well.