EADS has withdrawn its bid for DRS Technologies, the European group’s CEO Louis Gallois says.

Gallois says the firm is still interested in making acquisitions in the US due to the consistent strength of the euro.

“We are determined to be present in the US market in domains such as services, defense and security,” he says.

Earlier this month, Italian defence conglomerate Finmeccanica announced it had entered negotiations to buy DRS Technologies for around US$5.2bn.

“The average value of our targets is far below this level,” Gallois says.

In March, Gallois said that EADS was ready to acquire anything in the range of US$1.5bn.

“After making an assessment of costs and effectiveness of buying this company, we have decided to withdraw from the bidding process.”

By Elizabeth Clifford-Marsh