BAE, Boeing step up talks-paper
  
LONDON, Dec 12 (Reuters) - Britain's BAE Systems and Boeing Co are 
intensifying alliance discussions between the British and U.S. sector 
leaders, the Sunday Times newspaper reported, citing unnamed American 
industry experts. 

A defence sector tie up between the two companies is now being anticipated 
next year, and industry insiders expect it to lead ultimately to a full scale 
corporate link, the newspaper said. 

The newspaper cited a senior Boeing executive confirming that talks were 
going on. 

``We have watched events unfold in Europe recently and believe we should do a 
deal. We have spoken to BAE on several occasions in recent times as we have 
with other European groups and are hopeful of getting together a deal in the 
first half of next year,'' the executive said. 

The newspaper said that Boeing had overtaken Lockheed Martin 
 as BAE's favoured U.S. partner in its bid to remain a major defence industry 
player after being locked out of the west European megadeal that brought 
Germany's DaimlerChrysler together with Aerospatiale of France. 3769, 
andrew.callus+reuters.com)) 

06:56 12-12-99
