Non-Subscriber Extract
Thales seeks to soothe German government concerns over Atlas Elektronik sale
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| 22 November 2005 |
By Guy Anderson, Editor, Jane’s Defence Industry
An attempt by the German government to veto the proposed sale of BAE Systems' Bremen-based marine subsidiary, Atlas Elektronik, could "technically speaking be challenged in law", a Thales executive has said.
His comments came as negotiations surrounding the sale of Atlas draw to a close, with an announcement expected this month.
BAE Systems previously said that it had informed the original seven bidders - Saab AB, L-3 Communications, German space and satellite systems group OHB, Thales, Finmeccanica, EADS and ThyssenKrupp - of "the right of veto held by the German government".
Legislation passed by the Bundesrat in August 2004 gives the federal government a veto over foreign acquisitions of stakes greater than 25 per cent in its domestic defence operations.
A Thales executive told Jane's Defence Industry that the legislation would have to be considered "in line with Germany's foreign trade obligations", but stressed that Thales would not actually consider legal action against the Berlin government.
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