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
