Italian aerospace company Finmeccanica said on Thursday its partnerships with EADS and BAE Systems would continue even if the two companies go ahead with a planned tie-up.
"Finmeccanica has established consolidated partnerships with both companies in the industrial, technological and commercial field, which will continue with the combined entity", it said in a statement.
BAE Systems and EADS said on Wednesday they were in talks to create an industry leader that would overtake US rival Boeing in sales and contend with cutbacks in defense spending in Europe and the United States.
According to Mediobanca analysts, an EADS-BAE combination would limit Finmeccanica's ability to compete in Europe.
"The news is negative for Finmeccanica because it signals a dramatic situation in expectations for defense budgets... and would make it very difficult for Finmeccanica to get orders in France, UK, Germany," Mediobanca said in a note on Thursday. "In terms of potential M&A Finmeccanica has only one option left: Thales."