BAE Systems is climbing higher on optimism at the Paris air show and talk of a renewed tie-up with EADS.
The latter was soon shot down by an EADS spokesman. According to Reuters, Rainer Ohler said:
Considerations about a deal with BAE are water under the bridge, we have said this time and again, the window is closed.
Last October political opposition, particularly from Germany, scuppered plans for the two business to merge, but a recent report suggested EADS had left the way open for a new attempt at a deal.
Meanwhile positive comments in Paris about the Eurofighter, where BAE has a stake, has helped support the company's shares, which are currently 7p higher at 402.7p.
Ahead of a statement from US Federal Reserve chairman Ben Bernanke later, markets are treading water, with the FTSE 100 down 29.16 points at 6345.05 and the Dow Jones Industrial Average 17.2 points or 0.11% lower at the open.
