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Upgrading to R/3 4.7 on AS/400

I have a two questions (one directly applies to this forum, the other loosely applies (can't find where else to put it.) My organization is looking at the possibility of upgrading from SAP 4.0B to 4.7 in an AS/400 environment. I recall seeing a presentation that we cannot do a direct upgrade from 4.0 if we are running R/3 on AS/400. Is this true?

Second question: We are currently running two instances of SAP, one is Aerospace & Defense in 4.6, and the other is Public Sector (FM) in 4.0. We are looking at integrating them into a single instance in our possible upgrade to 4.7, but have heard that we cannot merge these two into a single instance. True or false?
Please check the database and operating system dependencies in OSS note 513536, and resource requirements for R/3 Enterprise in 517085. More information is maintained in general at http://service.sap.com/enterprise. Please contact SAP if you have any questions.

The feasibility of integrating the two instances and possible upgrade to the 470 Kernel has many dependencies and no clear answer without knowing your current situation. However, the project should maintain a critical assessment of factors such as bringing the releases up to a static release, i.e. upgrade 4.0-4.6, sizing, and business implications of the merge, i.e. SAP previous customer cases. Please call SAP and the hardware vendor if you have any questions.

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