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Boeing tells EU to back off
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May 14, 1997: 9:01 a.m. ET
Firm warns of trade war if EU blocks its merger with McDonnell Douglas
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NEW YORK (CNNfn) - Boeing told the European Commission on Tuesday that it may spark a transatlantic trade war if it tried to stop the U.S. company's attempted merger with McDonnnell Douglas, the Financial Times reported Wednesday.
Boeing said that problems between Washington and Brussels may arise if the Federal Trade Commission approved the union, and the EU tried to block it.
The company fears the EU might fine the combined group 10 percent of its revenues, which are expected to be $48 billion, the paper said.
Seattle-based Boeing was responding to statements made by EU competition commissioner Karel Van Miert, who claimed that Brussels has the right to stop the merger.
Van Miert also protested the decision by American Airlines and Delta Air Lines to appoint Boeing as their exclusive aircraft supplier for 20 years, the Financial Times said.
The EU is expected to lay out its formal objections to the proposed merger over the next 10 days.
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Boeing
European Union
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