Boeing rules out BAE takeover bid
BAE is the UK partner in the Eurofighter project
American aerospace giant Boeing has ruled out making a takeover bid for British group BAE Systems.
The two companies have cooperated on a series of programmes, but there are no plans for closer ties, said Boeing chief executive Harry Stonecipher.
He said BAE had a range of activities the US firm was not interested in, such as ship and submarine building.
His comments contrast with the apparent enthusiasm for a merger from his predecessor, Phil Condit.
BAE SYSTEMS
UK’s biggest defence contractor
Looking for US merger partner
Owner of 20% stake in plane maker Airbus
BAE Systems share price
Mr Stonecipher, in London for his first visit since his appointment as new Boeing boss, said he would be meeting BAE chairman Sir Richard Evans but purely for social reasons.
Last week, Boeing and BAE were turned down by the UK government over a joint bid for a huge contract to provide the Royal Air Force with refuelling aircraft, preferring the pan-European EADS group.
There has been persistent speculation about a US tie-up for the UK’s biggest defence firm.
Some investors have argued that finding a US merger partner is crucial if BAE is significantly to expand its business in the valuable US market.
In October US firm General Dynamics walked away from exploratory merger talks with BAE.
By: MSR777 - 5th February 2004 at 23:35
Glad its not happening…….not something I would like to see.
By: Bmused55 - 5th February 2004 at 10:07
Not sure is an American company would be subject to that. Also, Airbus is based in france.
And as Boeing do not compete with BAe in Britian, that rule doesn’t apply.
AFAIK anyway
By: andrewm - 4th February 2004 at 23:04
Surly the UK compeititon rule would stop them buying it as they would be buying to a compeditor in the same market which can lead to price fixing with is illegal. This happened with the sale of Belfast City Airport, TBI owners of Luton and Belfast Intl wanted City but couldnt as competition laws in the UK would stop them buying City.
By: Bmused55 - 4th February 2004 at 22:48
Well, say Boeing did take over BAe systems, they would then be part of Airbus, as BAe is part of airbus.
Or would BAe’s membership be annulled?
Perhaps it would be part of a ploy by Boeing… getting into airbus from the back door LOL.
Hell, at least Airbus would then get built properly… LMAO! JOKING ALL!
By: Bmused55 - 4th February 2004 at 11:04
Originally posted by KabirT
doesent make any sense why Boeing should take over BAe
For their Aerospace technology wing no doubt.
Also it would give them a foothold in Europe.
WOAH! and a share in Airbus I beleive, BAe being part of EADS and all.
By: KabirT - 4th February 2004 at 10:54
doesent make any sense why Boeing should take over BAe
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February 3, 2004 at 10:55 pm