(Adding report from Sunday Telegraph newspaper)
LONDON (AFX) - BAE Systems PLC and VT Group PLC are expected to table a 750 mln stg joint bid for Babcock International PLC within the next seven to 10 days, according to an unsourced article on The Business newspaper.
Some of Babcock's key shareholders have indicated they would accept a bid of about 350 pence a share, up from Friday's close of 315.5 pence, it said.
The newspaper said other bidders -- including French defence group Thales, US private equity group Carlyle and UK support services provider Serco Group PLC -- are believed to be preparing rival offers.
VT Group is planning to sell its shipyards to BAE if their bid for Babcock succeeds, the Sunday Telegraph newspaper reported without citing sources.
The deal will, in effect, turn VT into a dominant force in support services and leave BAE, the UK's largest defence company, in command of the country's naval shipyards, it said.
One scenario will see BAE and VT effectively break up Babcock -- BAE will take Babcock's naval shipyard in eastern Scotland and its submarine re-fitting business on the Clyde, while VT would pick up Babcock's support services business, the article said. monicca.egoy@afxnews.com mbe/hjp/mbe/hjp COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited