Cable lifted by M&A talk

EADS, the maker of Airbus and one of the biggest companies in Europe, is in talks to takeover the UKs BAE, according to Bloomberg.

Cable is back above 1.61 following the report. BAE has a market cap of about 10B pounds, which sounds like a lot but wouldn’t be enough to create much more than a ripple in GBP trading.

Update: BAE has confirmed the talk and it looks like a merger, not a takeover. BAE would own 40% of the merged company with EADS owning 60%.