FRUSTRATED shareholders have voiced their concern about being kept in the dark about the details of a potential merger to create the world’s biggest defence company.

BAE’s potential £28billion merger with French defence company and Airbus owner EADS has reached a ‘critical stage’, with a decision due today.

However, sources close to BAE said the deadline is likely to be extended by 14 days in a bid to iron out concerns over national security, state shareholding, location of headquarters, and jobs.

Defence secretary Philip Hammond was due to meet with his French and German counter-parts at a Brussels Nato meeting yesterday to discuss the merger, and a possible extension to its looming stock exchange deadline.

The French and German governments have stakes in EADS, and their possible role in the merged entity has proved controversial.

The UK, instead, maintains a ‘golden share’ in BAE, which allows it to block takeover bids.

It is understood the two companies want more time to complete merger talks and persuade investors to back the deal.

A source close to BAE said: “BAE takes on all the feedback from the shareholders, who are frustrated because the company has not been able to explain the rationale, and the details, behind the merger, but that’s been something it has been unable to do because of the rules by the UK takeover panel.

“BAE is looking forward to getting to a position where it can explain the full details of the terms.”

Tom Enders, the EADS chief executive, and Ian King, the BAE Systems’ chief, were due to meet yesterday and “decide the way forward”, according to an EADS statement.

A shocking report claimed that 30 per cent of BAE’s existing shareholders admitted to having concerns about the potential merger Talks continued into the evening, with all parties and stakeholders.

The company has until 5pm today to request an extension to the deadline for the merger talks.