Race against time for Boeing take-over

Date: 17/07/1997

THE European Commission increased the pressure on the world's leading aircraft-maker Boeing to make last-minute concessions this week as time ran out to save its 10-billion-ecu take-over of rival McDonnell Douglas.

Competition experts from national governments supported the Commission's tough stand against the deal yesterday (16 July) in a move which significantly increased the prospect of its being banned.

The Commission has until next Wednesday (23 July) to make a final ruling on the merger of the world's first and third biggest aircraft-makers. But that decision must be preceded by consultations with national governments and between top Commission officials, leaving little leeway for a late rescue.

Commission sources said lengthy negotiations with Boeing had produced inadequate concessions from the manufacturer to ease its worries.

The institution highlighted Boeing's exclusivity clauses to supply aircraft to US airlines, the marketing advantage of joint civil and defence contracts, and the overall dominance in the civil aviation sector which would result from the deal, as the main obstacles to approval.