UK defence firm taken over by General Dynamics

US defence giant General Dynamics is to acquire British military manufacturing company Alvis in a deal worth £309m (€454m).

Alvis stock rose nearly 40% on news of the bid while directors said the deal would bring high tech know-how to the company.

If successful it would be the biggest move by a US operator into the British military market.

Alvis is 30% owned by Britain's largest defence group BAE Systems since last year.

BAE said today that it was reviewing its shareholding options after news of the deal broke.