seruriermarshal
06-20-2005, 04:46 AM
BAE hints it is willing to pull out of Airbus
Defence group chief considers turning his back on Europe and aiming for US market
David Gow in Paris
Tuesday June 14, 2005
The Guardian
BAE Systems would be prepared to sell its stakes in both Airbus and the European missile maker MBDA, the chief executive, Mike Turner, has indicated for the first time.
Speaking at the biennial Paris air show, which opened at Le Bourget yesterday, Mr Turner made it plain that BAE had no interest in taking part in further consolidation of the European aerospace industry and was already putting its stake in Atlas, an underwater missile business co-owned with a German firm, up for sale.
His comments came as the prospect of a closer tie-up or even merger between Thales, the Franco-British defence electronics group, and Finmeccanica, the Italian military group that owns the helicopter manufacturer AgustaWestland, moved closer.
Mr Turner's aides insisted that BAE had no immediate plans to dispose of its 20% stake in Airbus, which is highly profitable, earning about €2bn (£1.34bn) a year, or of its share of MBDA, which is making the Meteor missile for the Eurofighter Typhoon.
But the group's chief executive made no secret of his plans to expand its business in the more lucrative US defence market, where it already turns over close to $10bn (£5.5bn) and is among the Pentagon's top 10 suppliers.
His desire to shift more of BAE's business to the US has been strengthened by the government's dilatory progress in shoring up Britain's defence industrial base. There is also frustration at delays in securing technology transfers from the US associated with BAE's share of developing the next-generation F35 joint strike fighter being built by Lockheed Martin.
"The business now is in great shape and the issue is not BAE any more but the UK," Mr Turner said. "Does it want to maintain the highest level of technology or not? We need to control the upgrades of programmes like the F35."
**** Olver, BAE's chairman, is to lobby **** Cheney, US vice-president, and senior members of Congress on the issue this weekend amid fears that continuing blocks on technology transfer cost British industry billions of pounds.
Mr Turner held out the prospect that John Reid, the new defence secretary, would be more supportive of Britain's industrial base but said that, without the technology transfer, the country would end up "tin-bashing".
He indicated that BAE had no interest in buying or merging with Thales, which has an uncertain future. Last week Dassault, the French aerospace company, announced it wanted to sell its 5.7% stake in the defence electronics group.
Thales, in which the French state owns 32.2%, had been linked in recent years with a takeover by EADS, Europe's biggest aerospace group, but this came to nothing.
Francesco Guarguaglini, Finmeccanica's chief executive, said his group was keen to explore further restructuring of Europe's defence industry while Italian ministers suggested the part-privatised group could take over Dassault's holding in Thales.
Denis Ranque, Thales chief executive, insisted his group was a European leader in its field but held out the prospect of joining forces with another company at some time.
Finmeccanica, meanwhile, said it had no plans for further job losses at Westland when the 600 redundancies were completed, taking the workforce in Yeovil, Somerset, down to 2,700.
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From (http://www.guardian.co.uk/business/story/0,3604,1505646,00.html)
Defence group chief considers turning his back on Europe and aiming for US market
David Gow in Paris
Tuesday June 14, 2005
The Guardian
BAE Systems would be prepared to sell its stakes in both Airbus and the European missile maker MBDA, the chief executive, Mike Turner, has indicated for the first time.
Speaking at the biennial Paris air show, which opened at Le Bourget yesterday, Mr Turner made it plain that BAE had no interest in taking part in further consolidation of the European aerospace industry and was already putting its stake in Atlas, an underwater missile business co-owned with a German firm, up for sale.
His comments came as the prospect of a closer tie-up or even merger between Thales, the Franco-British defence electronics group, and Finmeccanica, the Italian military group that owns the helicopter manufacturer AgustaWestland, moved closer.
Mr Turner's aides insisted that BAE had no immediate plans to dispose of its 20% stake in Airbus, which is highly profitable, earning about €2bn (£1.34bn) a year, or of its share of MBDA, which is making the Meteor missile for the Eurofighter Typhoon.
But the group's chief executive made no secret of his plans to expand its business in the more lucrative US defence market, where it already turns over close to $10bn (£5.5bn) and is among the Pentagon's top 10 suppliers.
His desire to shift more of BAE's business to the US has been strengthened by the government's dilatory progress in shoring up Britain's defence industrial base. There is also frustration at delays in securing technology transfers from the US associated with BAE's share of developing the next-generation F35 joint strike fighter being built by Lockheed Martin.
"The business now is in great shape and the issue is not BAE any more but the UK," Mr Turner said. "Does it want to maintain the highest level of technology or not? We need to control the upgrades of programmes like the F35."
**** Olver, BAE's chairman, is to lobby **** Cheney, US vice-president, and senior members of Congress on the issue this weekend amid fears that continuing blocks on technology transfer cost British industry billions of pounds.
Mr Turner held out the prospect that John Reid, the new defence secretary, would be more supportive of Britain's industrial base but said that, without the technology transfer, the country would end up "tin-bashing".
He indicated that BAE had no interest in buying or merging with Thales, which has an uncertain future. Last week Dassault, the French aerospace company, announced it wanted to sell its 5.7% stake in the defence electronics group.
Thales, in which the French state owns 32.2%, had been linked in recent years with a takeover by EADS, Europe's biggest aerospace group, but this came to nothing.
Francesco Guarguaglini, Finmeccanica's chief executive, said his group was keen to explore further restructuring of Europe's defence industry while Italian ministers suggested the part-privatised group could take over Dassault's holding in Thales.
Denis Ranque, Thales chief executive, insisted his group was a European leader in its field but held out the prospect of joining forces with another company at some time.
Finmeccanica, meanwhile, said it had no plans for further job losses at Westland when the 600 redundancies were completed, taking the workforce in Yeovil, Somerset, down to 2,700.
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From (http://www.guardian.co.uk/business/story/0,3604,1505646,00.html)