EADS denies eyeing Thales link-up

PARIS (Reuters) - EADS (EAD.PA: Quote, Profile, Research, Stock Buzz) on Wednesday denied being interested in an alliance with Thales (TCFP.PA: Quote, Profile, Research, Stock Buzz) despite earlier comments from one of its executives that the Airbus parent was open to a tie-up with the defense electronics firm.

"Such an alliance is not on the agenda," a spokesman at EADS said of Thales, which has a $12.5 billion market capitalization.

Herve Guillou, the head of EADS's Defence and Communications Systems, had earlier told Reuters that the European aerospace giant was looking forward to consolidating Europe's defense industry and taking on U.S. rivals.

"It can be Thales. It can be other companies. We are totally open ... Thales has always been our best friend since many years," Guillou said.

But the EADS spokesman said Guillou's comment "does not reflect in any way the group's strategic agenda."

There also appeared to be conflicting comments from EADS executives on the issue of a possible counterbid for U.S military contractor DRS Technologies Inc DRS.N.

EADS Chief Executive Louis Gallois said on Wednesday that the group was still interested in DRS despite Italy's Finmeccanica SpA (SIFI.MI: Quote, Profile, Research, Stock Buzz) wrapping up a deal this week to buy the U.S. firm for $3.94 billion.

"It is on our target list, we are monitoring the situation, no decision has been taken. Finmeccanica is on the way to making a firm offer," Gallois said.

But hours later, Guillou said a counterbid was "not today a priority at least," and that EADS was already busy integrating Californian emergency response firm PlantCML, which EADS bought for $350 million in April.

A spokesman at EADS declined to comment.

Finmeccanica's deal with DRS is the biggest so far in efforts by European companies to grab a slice of the massive U.S. defense market.

(Reporting by Ingrid Melander, Matthias Blamont and Marie Maitre; Editing by Gary Hill)