BAE denies report of EADS merger collapse

British defense group BAE denied on Friday a German media report that its proposed deal with EADS had collapsed.

"The deal is not off and we continue to work towards the 10th October deadline set by the UK Takeover Panel," a spokesman said. "If the deal was off, we would be issuing a statement to the Stock Exchange."

Germany's Der Spiegel news magazine, citing German government sources, reported in its online edition that Britain, France and Germany, whose approval is needed for the $45 billion merger, had failed to agree a deal.

(Reporting by Kate Holton; Editing by Rosalba O'Brien)