EADS pulls out of U.S. defense acquisition

European aerospace and defense giant EADS N.V. withdrew from a major U.S. defense acquisition in late December because its board wanted to preserve cash, reports CNNMoney.com.

EADS Chief Executive Officer Louis Gallois said at a press conference today held at its facilities in Newport, Wales, that the board decided at the very last minute to pull out of the deal to preserve cash as the global economic climate continued to deteriorate.

Gallois declined to name the company but said the target recently won a large order from the U.S. Defense Department.

EADS and partner Northrop Grumman Corp. last year won a major refueling aircraft contract, only to see the contract cancelled after a protest by Boeing Co.