BAE/Carlyle split over subs deal

Manufacturing News, Source : TheManufacturer.com
Published : 19 Mar 2007 10:38
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The bid to take control of Britain’s nuclear submarine industry took an unexpected turn at the weekend after reports emerged of a split between BAE Systems and American private equity firm Carlyle Group.

The two firms had been expected to make a joint bid for Devonport Management Limited (DML), which runs key maintenance support for the submarine fleet. But The Sunday Times reported on Sunday that BAE and Carlyle were considering making rival bids. A source close to both parties said, “They have not decided yet – it could go either way in the next few days,” the newspaper reported.

DML has been put up for sale by KBR, the US group that is its majority shareholder, with UBS appointed to handle the auction.

First round offers are due this week. Two other groups – engineering group Babcockm which runs the Rosyth naval dockyard and the Faslane submarine base, and US defence contractor General Dynamics – are expected to put in rival bids.

 

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