Warning over BAE Systems merger

AOL Money Staff

The proposed merger between BAE Systems and European aircraft manufacturer EADS could cost UK jobs and upset Britain's defence relationship with the United States, a Conservative MP has warned.

Ben Wallace called for caution over the deal, warning that EADS, which is part-owned by the French and German states, may be making a "grab" for BAE's multi-billion pound American business while planning to make any cuts to the merged company's workforce in Britain.