|
Marconi/BAe deal is close
|
 |
January 18, 1999: 4:24 a.m. ET
U.K.'s General Electric Co. and British Aerospace say they're in advanced talks
|
LONDON (CNNfn) - Britain's General Electric Company confirmed Monday it is in advanced negotiations to sell its Marconi defense arm to British Aerospace.
BAe also confirmed the talks.
Press reports said GEC could get as much as £8 billion ($13.3 billion) for its defense business and that a deal could be announced this week.
GEC is scheduled to hold a board meeting on Wednesday.
"The boards of GEC and British Aerospace have noted recent press comment and confirm that they are in advanced discussions. A further announcement will follow in due course," the companies said in a joint statement.
Industry speculation around the deal points to creation of a larger European aerospace and defense industry combination which would be able to better compete with U.S. giants Boeing, Lockheed Martin and Raytheon.
BAe came close in December to agreeing to a deal with Germany's Daimler Chrysler Aerospace (Dasa) to form a defense group with combined sales of over $23 billion.
But those talks were abandoned after GEC approached BAe with the aim of selling Marconi.
BAe is up 2.6 percent in early London trading at 532.5, while GEC shares rose 2 percent to 582 pence.
|
|
|
|
|
 |
|
