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But wouldn't the Midgard Serpent be tied more into the Thor Universe. I think The Avengers films can have villains from Hulk, CAP, IM and Thor Universes, but the individual movies should stick with there villains.
The villain of the movie is primarily tied to the Thor universe, so it would make more sense. Also, IM3 is going to have more of a espionage feel, so Fin Fang Foom somehow being tied to Mandarin wouldn't make sense, since Mandarin likely needs to be altered a bit.