23rd Mar 2006 17:20
VT GROUP PLC23 March 2006 23 March 2006 Recent rise in share price of Babcock International VT Group plc ("VT") has noted the recent rise in Babcock International plc's ("Babcock") share price. VT, BAE Systems plc ("BAE Systems") and other naval equipment suppliers haverecognised for some time that a restructuring of the UK surface ship andsubmarine sectors would be to the benefit of the industry and the Ministry ofDefence ("MoD") and a number of exploratory discussions have taken placerecently between industry participants and the MoD about potential businesscombinations. Furthermore, the Defence Industrial Strategy, set out in theDefence White Paper published in December 2005, clearly stated HMG's view thatthere is need for consolidation of the UK's Maritime Industrial Base. Against this background, VT and BAE Systems have been exploring the possibilityof a potential joint acquisition of Babcock. Discussions are at a verypreliminary stage and no approach has yet been made to the Board of Babcock.There is no certainty that any offer will be made. A further announcement willbe made if appropriate. Contacts: Paul Lester, Chief Executive: Tel: 01489 775211 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BAE SystemsBabcock