By Glen Owen PUBLISHED: 19:51 EST, 29 September 2012 | UPDATED: 19:53 EST, 29 September 2012 Liaison: Sir John Scarlett is helping 'soothe concerns' at No 10 The row over the controversial merger of defence giant BAE with the Franco-German aerospace group EADS took a fresh twist last night after it emerged that Tony Blair’s former spy chief is helping to broker the deal. Sir John Scarlett, the ex-head of MI6 who played a key role in the infamous ‘dodgy dossier’ on Iraq, has been engaged on the £29 billion deal by investment bank Morgan Stanley – which stands to earn millions if it is approved.
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Merger of defence giant BAE with aerospace group EADS took a fresh twist
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Tony Blair's former spy chief is helping to broker the deal, it has emerged
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Opponents argue that the new conglomerate would cut costs by slashing jobs, while national security could be placed at risk if it fell under the sway of the French and  @placeholder governments.