BAE Systems dismiss merger talks

UK aerospace group BAE Systems has dismissed speculation that it was holding merger talks with a US defence contractor.

The group denied reports that it was involved in talks with General Dynamics, which specialises in high-tech defence systems, in a bid to find a trans-Atlantic merger partner.

A spokesman said the company held talks on a regular basis with the major players in the defence industry.

BAE chief executive, Mike Turner, was said to have dismissed the rumours when addressing journalists ahead of the Paris air show.