Quote:
Originally posted by Tony Smith
While Thales, and it's subsidiary Thales Australia, has undoubtedly built a fine global reputation in the Defence business, does anyone see an issue with the bulk of any country's Defence-related industrial strength being foreign owned?
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I most certainly do. See what happened when your national gas supply comes from Russia and the Russians have "the valve" in their territory. . . . . . . .
A similar thing happened with Alvis-Vickers when it seemed General Dynamics Corp. were to buy the conglomerate out, at the last moment an asset management company put vast sums into British Aerospace (BAe) so they could easily out-bid GDC.
Bear in mind Alvis-Vickers, itself a recent conjunction, already owned some of the major European defence contractors.
From Hansard:
Mr. Gray: To ask the Secretary of State for Defence (1) what assurances General Dynamics has given regarding the continuance of (a) Alvis plc's UK-based and (b) Alvis Hagglund's development and production programmes and capabilities; [177780]
(2) what light and medium armour capabilities are produced by General Dynamics Corporation and its subsidiaries; what discussions have been held with General Dynamics concerning Alvis plc's Future Rapid Effects System activities; and if he will make a statement on the defence implications of the Office of Fair Trading's investigation into the proposed takeover of Alvis plc by General Dynamics Corporation. [177892]
Mr. Ingram: General Dynamics Corporation (GDC) and its subsidiaries produce a full suite of light and medium armour capabilities. Since the GDC offer to acquire Alvis plc was announced there have been several high-level discussions between the Ministry of Defence and GDC. These discussions covered both Alvis plc and the Future Rapid Effects System programme. On 3 June 2004 the Alvis plc Board recommended to its shareholders their acceptance of an offer from BAE Systems to acquire the company. GDC subsequently announced on 4 June 2004 that it would not revise its offer. The GDC offer for Alvis plc formally lapsed on 7 June 2004.
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Of course we don't know what official string-pulling with the "Hedge Funds" went on behind the scenes.
http://news.bbc.co.uk/1/hi/business/6084832.stm
http://news.bbc.co.uk/2/hi/business/3773281.stm
R.