GEC HAS OPENED negotiations with Siemens over a possible purchase of the German Company's defence-electronics operation, as long-running joint-venture talks between Siemens and Daimler-Benz Aerospace (DASA) have run into trouble.
Although both German companies insist, that year old talks on a link between Siemens' defence electronics group and DASA's defence and civil systems group are continuing, industry sources say, that they are not running smoothly.
Siemens officially plays down quotations attributed to the company in the German press. These accuse DASA of vagueness and failure to meet deadlines, and threaten to break off talks. DASA describes the press statements as "nonsense" and insists that the mood of the talks remains "normal and co-operative".
Siemens says that, while a joint venture is still possible, it is now open to the idea of selling the defence-electronics business "...if it makes sense". GEC declines to comment.
GEC and Siemens joined in 1989 to take control of UK electronics group Plessey. GEC agreed then that it would not have an interest in what became the Siemens-Plessey operation covering military radar, command and control equipment, air traffic control and satellite communications. That agreement may have lapsed, however.
Source: Flight International