BAE shares slip as takeover deadline looms Shares in BAE Systems slipped on Wednesday, as the 5pm Takeover Panel deadline for EADS to make a formal offer for the company loomed. The talks surrounding a deal looked ever more complex, with fresh objections from Germany adding to the array of questions over the €34bn merger. Hopes that a statement could be issued before the start of Wednesday's session were scotched. It looked like the discussions could go right down to the wire, as people close to the transaction said they could wait until the last minute to request an extension to the regulatory deadline, in an effort to secure more concessions from European governments. "The lack of attention given to shareholder value in this merger is highly concerning," said Guy Brown, analyst at Oriel Securities. The potential saviour for BAE investors, should the deal collapse, would be a bid from a US prime. Lockheed Martin, Raytheon, Northrop Grumman and General Dynamics all seem plausible bidders. The complication would be US consolidation and would require significant disposals in the US . . . We expect talks [on the existing deal] will continue after Wednesday. As the waiting went on, BAE's stock fell 0.4 per cent to 323.4p. EADS was 0.2 per cent weaker at €26.1 in Paris. Banking stocks were energised by news in the Financial Times that the Financial Services Authority was relaxing capital and liquidity rules as part of government attempts to boost lending. The UK regulator told banks they would not be required to hold extra capital against new UK loans issued under the "funding for lending" scheme. Lloyds Banking Group topped the FTSE 100, rising 3.1 per cent to 38.1p and was not short of familiar company at the top of the market. Royal Bank of Scotland was 1.6 per cent higher at 261.5p and Barclays rose 1.3 per cent to 224.2p. Overall, London's benchmark was slightly lower, falling 8 points or 0.1 per cent to 5,802.0, taking it back to the bottom of its recent trading range. Oil stocks exerted the most pressure on the index at sector level, as crude prices continued to weaken under $93 a barrel.