LONDON (Reuters) - Britain's BAE Systems said on Wednesday it was in talks about a tie-up with EADS , the parent of Airbus, to create a European powerhouse in aerospace, defense and security.
BAE shareholders would own 40 percent of the combined group and EADS (EAD.PA)(EAD.MC)shareholders the remaining 60 pct, BAE said in a statement.
"The potential combination would create a world class international aerospace, defense and security group with substantial centers of manufacturing and technology excellence in France, Germany, Spain, the UK and the USA," BAE Systems said.
(Reporting by Paul Sandle; editing by Guy Faulconbridge)
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