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BAE confirms Airbus sale talks

07/04/2006

Union leaders are urgently seeking talks with BAE Systems (BAE), following the defence company's announcement that it is planning to sell its 20 per cent stake in Airbus.

Around 13,000 workers are currently employed in north Wales and south-west England making parts for Airbus commercial aircrafts, with thousands of additional UK jobs also thought to depend on the Airbus partnership.

Responding to frenzied media speculation, BAE confirmed in a statement to the London Stock Exchange this morning that it was in talks with the Franco-German group EADS, which owns the remaining 80 per cent of Airbus.

The defence firm stressed, however, that the discussions were at an "early stage".

Unions have reacted with alarm to news of the possible £3 billion sale, which could threaten thousands of jobs.

Amicus' national officer Ian Waddle said: "Obviously we have concerns, particularly because of uncertainty about any impact on jobs.

"We want to find out if production will remain in the UK or whether it will be shifted to the countries where the new buyers are based."

The sale is likely to be seen as an embarrassment by the government, which has provided aid to support various Airbus projects, including the development of the new double-decker A380, soon to enter service as the world's biggest airliner.

The Department of Trade and Industry (DTI) stressed that BAE's decision to sell its Airbus stake was a "commercial one for the company", but added government ministers were keen to consult with the defence firm about the move.

"Trade and industry secretary Alan Johnston has already sought an early meeting with BAE Systems to discuss the situation and any next steps," a DTI spokesman said.

BAE is expected to use the proceeds from the sale to invest in its fast-growing US operations.

Shares in the London-listed defence firm have fallen by one pence to 430p this morning following confirmation of the Airbus sale talks.

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