23rd Mar 2006 17:28
BAE SYSTEMS PLC23 March 2006 BAE SYSTEMS plc MARITIME SECTOR RESTRUCTURING BAE Systems plc has noted the recent rise in the share price of BabcockInternational Group PLC. BAE Systems plc and other major naval contractors haverecognised for some time that a restructuring of the UK naval surface ship andsubmarine sectors would be to the benefit of both the Ministry of Defence andindustry. A number of exploratory discussions have therefore taken placebetween industry participants about potential business combinations. Furthermore, the Defence Industrial Strategy, set out in the Defence White Paperpublished in December 2005, clearly stated HMG's view that there is need forconsolidation of the UK's Maritime Industrial Base. Against this background, BAE Systems plc confirms that it is considering variousoptions in relation to the restructuring of the maritime sector. It is engagedin exploratory discussions with VT Group plc with respect to a potential jointacquisition of Babcock International Group PLC. No approach has yet been madeto the Board of Babcock International Group PLC and there is no certainty thatany offer will be made. A further announcement will be made if appropriate. 23 March 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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