EADS shares rise, BAE Systems falls on report deal talks collapse

Reuters

Shares in EADS rose sharply and those in BAE Systems fell on Tuesday, with three traders attributing the move to a report by German news agency DPA that merger talks between the two companies had collapsed.

The DPA report cited sources close to the negotiations.

Continue Reading Below

A source close to EADS told Reuters that the DPA report was wrong.

EADS shares rose as high as 26.85 euros a share before ceding most of their gains to trade up 0.2 percent on the day at 26.30 euros by 1143 GMT (0743 EDT). Shares in BAE, meanwhile, were down 1 percent at 323.1 pence, off their earlier low of 320.9 pence.

(Reporting by London markets team)