Fresh fire on EADS deal hurts BAE shares Shares in BAE Systems were under fire in London on Monday after its biggest single shareholder attacked the proposed merger with EADS. Fund manager Invesco Perpetual, which owns 13 per cent of BAE, voiced criticism of the structure of the €35bn transaction and its likely impact on shareholder value. It also said it did "not understand the strategic logic for the proposed combination," and that the deal could "materially jeopardise BAE's unique and privileged position" in the US defence market. Shares in the UK defence group fell 0.9 per cent to 325.1p. The wider FTSE 100 also fell, with losses once again led by banking and miners, but the declines were more notable for their breadth. Only two of its defensive constituents rose. Pennon Group and its fellow utility Severn Trent made only negligible gains, up 0.1 per cent each to 731½p and £16.91 respectively in opening trade. The list of the biggest losers reads like a run down of London's riskier financial and resource stocks, as traders across global markets shunned risk. Traders seemed to be looking away from Friday's improving US jobs data and towards the uncertainty around Spain's potential request for financial aid. "With Luis de Guindos, the Spanish economy minister, saying that "Spain does not need a bailout at al," it is unlikely such a request will be made before today's Eurogroup meeting, meaning the next most likely time would be in the lead-up to the EU summit scheduled for October 18 and 19," said Cameron Peacock, analyst at IG Markets. "The fortunes of equities will no doubt remain closely correlated to the ongoing "will they, won't they, when will they" speculation over Spain seeking assistance from the EU." In the meantime, Mexican silver miner Fresnillo was the biggest single loser, down 3.3 per cent at £19.03. Russian silver miner Evraz lost 3.4 per cent to 245½p. Barclays was the biggest faller among the banks, down 1.9 per cent at 223.6p. Overall, London's benchmark index was 51 points weaker at 5,820.19, a loss of 1 per cent. Cookson Group, the mid-cap specialist materials company, issued a profit warning after weak trading within its unit which makes products used in the steel industry, including ceramic linings for foundries. It lost 14.5 per cent to 525½p, the biggest single fall on the FTSE 250. Overall, London's second tier index was 1 per cent weaker at 11,936.30, a loss of 1 per cent.