The head of European aerospace giant EADS, Tom Enders has said that more details about a possible merger with BAE Systems will be released soon.

He told shareholders that the merger talks are in good shape a formal announcement informing the stock markets could be made soon. He pointed out that he and his counterpart in BAE agrees that they will have to work a lot of convince their shareholders to approve the deal.

EADS, which operates plane-maker Airbus, is planning to tie up with BAE Systems to create an industry leader that will surpass rival Boeing of the US. French firm, Lagardere owns 7.5 percent, French state owns 7.5 percent and German carmaker Daimler holds 15 percent stake in EADS.

Lagardere has been planning to sell its 7.5 percent stake in the company but it has not been able to do that the because of the requirement to maintain a balance between French and German among ownership of shareholders of EADS. Analysts have said that any deal between BAE and EADS will allow Lagardere to reduce its stake.

Enders said the two companies are in `constructive and advanced' talks with governments. The two heads of the companies are aiming to scrap the equality ownership between France and Germany and create a normal functioning firm.