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BAE Sold To US Investors

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posted on Nov, 2 2006 @ 06:29 PM
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BAE may become an American based company rather than a British on legal and economic grounds. BAE as a foreign company faces certain legal restrictions on operating in the US and its US assets. Most of BAE's newest contracts are with the US and the US is by far the largest market. By formally becoming American owned they remove major restrictions on operating in the US. Heads aty BAE say they'll probably wait until US citizens hold half of BAE's shares before beginning the process of moving to the US. Currently US citizens hold roughly a third of BAE shares.
 



www.economist.com
THE divorce has been so long in the making that few eyebrows were raised when Lord Drayson, the defence-procurement minister, said he was “relaxed” at the prospect of BAE Systems, Britain's biggest defence contractor, leaving the country. More important than who owns BAE, Lord Drayson told the Financial Times in an interview published on October 23rd, is where the company's skills and intellectual property reside.

Lord Drayson's comments are of more than passing interest to BAE, whose heritage can be traced back to the firms that built the Spitfire and Hurricane fighters that duelled with German aircraft in the Battle of Britain. The firm has long wanted to move to America where defence spending is almost ten times higher than in its home market (see chart). But it can do so only if the British government lifts a veto barring takeovers and foreign management of BAE established when the company was privatised in 1985.


Please visit the link provided for the complete story.


Business wise it makes alot of sense but I'm not sure how this would go down in the Commons. Most Britons believe they are already tied to closely to the US. This could have an adverse effect on US-UK relations.




posted on Nov, 2 2006 @ 07:40 PM
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Now it seems like this isn't going to happen.

Jolly good too!

EDIT: Too add, BAe actually owns significant holdings in Lockheed Martin itself. I think there are others it has a stake in too.

[edit on 2/11/06 by stumason]



posted on Nov, 2 2006 @ 07:44 PM
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Good news to us. That means more tax revenue is coming to this country. Thank you BAE. A wonderful show of globalism at work if you ask me. I love this world.



posted on Nov, 2 2006 @ 08:30 PM
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Strange this. been on the Bae website and can find no mention anywhere of this, not in the press releases nor the investor relations sections.

Also, I've read another piece that says that a BAe move to the US is not going to happen.

EDIT: the title is also misleading. BAe has NOT been "sold" to US investors. Of course, investors from the US are free to buy the stock, but so is anyone else. It's hardly a "sale" to the US.

[edit on 2/11/06 by stumason]



posted on Nov, 2 2006 @ 08:50 PM
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I also have seen several articles that this may not be the case. As Stumason points out, thats not to say a US interest could buy up majority control of the company. But that would have to get by regulators on both sides of the pond



posted on Nov, 2 2006 @ 08:55 PM
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Indeed, Fred. I am sure that any proposed "sale" to the US would meet very stiff opposition from the Commons, not least because it is the sole provider for much of the British military hardware. The strategic implications of losing our most significant defence contractor, even to a friend like the US, would be disastrous.



posted on Nov, 2 2006 @ 09:22 PM
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I do not necessarily think it is a "sale" to the Us. It is more like a shift in identity for the company itself. Ahh well, if business is good for yall its good for us eh?



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