1
 British Aerospace PLC and France's Thomson-CSF S.A. said
5002
attribution

2
 they are nearing an agreement
5001
span

3
 to merge their guided-missile divisions,
2
elaboration-object-attribute-e

4
 greatly expanding collaboration between the two defense contractors.
5001
consequence-s

5
 The 50-50 joint venture,
5005
span

6
 which may be dubbed Eurodynamics,
5
elaboration-additional-e

7
 would have combined annual sales of at least #1.4 billion 
5004
span

8
($2.17 billion)
7
restatement-e

9
 and would be among the world's largest missile makers.
5007
List

10
 After two years of talks, plans for the venture are sufficiently advanced
11
enablement

11
 for the companies to seek French and British government clearance.
5008
span

12
 The companies hope for a final agreement by year-end.
5008
elaboration-additional

13
 The venture would strengthen the rapidly growing ties between the two companies,
5012
List

14
 and help make them a leading force in European defense contracting.
5012
List

15
 In recent months, a string of cross-border mergers and joint ventures have reshaped the once-balkanized world of European arms manufacture.
5012
circumstance

16
 Already, British Aerospace and French government-controlled Thomson-CSF collaborate on a British missile contract and on an air-traffic control radar system.
5023
List

17
 Just last week they announced 
5014
attribution

18
they may make a joint bid
5014
span

19
 to buy Ferranti International Signal PLC, a smaller British defense contractor
5013
span

20
 rocked by alleged accounting fraud at a U.S. unit.
19
elaboration-additional-e

21
 The sudden romance of British Aerospace and Thomson-CSF 
5020
span

22
-- traditionally bitter competitors for Middle East and Third World weapons contracts --
21
elaboration-additional-e

23
 is stirring controversy in Western Europe's defense industry.
5021
Same-Unit

24
 Most threatened by closer British Aerospace-Thomson ties would be their respective national rivals,
5026
span

25
 including Matra S.A. in France and Britain's General Electric Co. PLC.
24
elaboration-set-member-e

26
 But neither Matra nor GEC 
5028
span

27
-- unrelated to Stamford, Conn.-based General Electric Co. --
26
elaboration-additional-e

28
 are sitting quietly by
5027
span

29
 as their competitors join forces.
28
circumstance

30
 Yesterday, a source close to GEC confirmed
5031
attribution

31
 that his company may join the Ferranti fight, as part of a possible consortium
5031
span

32
 that would bid against British Aerospace and Thomson-CSF.
31
elaboration-object-attribute-e

33
 Companies
5034
span

34
 with which GEC has had talks about a possible joint Ferranti bid 
33
elaboration-object-attribute-e

35
include Matra, Britain's Dowty Group PLC, West Germany's Daimler-Benz AG, and France's Dassault group.
5035
Same-Unit

36
 But it may be weeks
37
temporal-after

37
 before GEC and its potential partners decide whether to bid,
5037
span

38
 the source indicated.
5037
attribution

39
 GEC plans first to study Ferranti's financial accounts,
5042
span

40
 which 
5040
span

41
auditors recently said 
40
attribution-e

42
included #215 million in fictitious contracts at a U.S. unit, International Signal & Control Group,
5039
span

43
 with which Ferranti merged last year.
42
elaboration-object-attribute-e

44
 Also, any GEC bid might be blocked by British antitrust regulators;
5045
span

45
 Ferranti is GEC's main competitor on several key defense-electronics contracts,
46
circumstance

46
 and its purchase by GEC may heighten British Defense Ministry worries about concentration in the country's defense industry.
5044
span

47
 A consortium bid, however, would diminish GEC's direct role in Ferranti
5048
span

48
 and might consequently appease ministry officials.
47
consequence-s

49
 A British Aerospace spokeswoman appeared unperturbed by the prospect of a fight with GEC for Ferranti:
5057
span

50
 Competition is the name of the game,
5056
span

51
 she said.
50
attribution

52
 At least one potential GEC partner, Matra, insists
53
attribution

53
 it isn't interested in Ferranti.
5059
span

54
 We have nothing to say about this affair,
5060
span

55
 which doesn't concern us,
54
elaboration-object-attribute-e

56
 a Matra official said Sunday.
5060
attribution

57
 The missile venture,
5065
span

58
 the British Aerospace spokeswoman said,
57
attribution-e

59
 is a needed response to the new environment in defense contracting.
5066
Same-Unit

60
 For both Thomson and British Aerospace, earnings in their home markets have come under pressure from increasingly tight-fisted defense ministries;
5067
List

61
 and Middle East sales, a traditional mainstay for both companies' exports, have been hurt by five years of weak oil prices.
5067
List

62
 The venture's importance for Thomson is great.
5070
span

63
 Thomson feels 
64
attribution

64
the future of its defense business depends on building cooperation with other Europeans.
5069
span

65
 The European defense industry is consolidating;
5072
span

66
 for instance, West Germany's Siemens AG recently joined GEC in a takeover of Britain's Plessey Co.,
5071
List

67
 and Daimler-Benz agreed to buy Messerschmitt-Boelkow Blohm G.m.b. H.
5071
List

68
 In missiles, Thomson is already overshadowed by British Aerospace and by its home rival, France's Aerospatiale S.A.;
5074
circumstance

69
 to better compete,
5073
span

70
 Thomson officials say,
69
attribution

71
 they need a partnership.
5073
enablement

72
 To justify 50-50 ownership of the planned venture,
73
purpose

73
 Thomson would make a cash payment to British Aerospace.
5079
span

74
 Annual revenue of British Aerospace's missile business is about #950 million,
5081
span

75
 a Thomson spokesman said.
74
attribution

76
 British Aerospace's chief missile products include its 17-year-old family of Rapier surface-to-air missiles.
5086
List

77
 Thomson missile products, with about half British Aerospace's annual revenue, include the Crotale surface-to-air missile family.
5086
List

5001
span
5002
span

5002
span
5003
span

5003
span
5009
span

5004
span
5006
Same-Unit

5005
span
5006
Same-Unit

5006
multinuc
5007
List

5007
multinuc
5003
elaboration-additional

5008
span
5010
span

5009
span
5011
span

5010
span
5009
elaboration-additional

5011
span
5019
span

5012
multinuc
5053
span

5013
span
18
elaboration-object-attribute-e

5014
span
5015
span

5015
span
5023
List

5016
span



5017
span



5018
span



5019
span
5083
span

5020
span
5021
Same-Unit

5021
multinuc
5023
consequence-s

5022
span



5023
multinuc
5052
span

5024
span



5025
span



5026
span
5029
antithesis

5027
span
5029
Same-Unit

5028
span
5029
Same-Unit

5029
multinuc
5030
span

5030
span
5064
span

5031
span
5032
span

5032
span
5036
span

5033
span



5034
span
5035
Same-Unit

5035
multinuc
5032
elaboration-additional

5036
span
5050
span

5037
span
5038
span

5038
span
5043
span

5039
span
5041
Same-Unit

5040
span
5041
Same-Unit

5041
multinuc
39
elaboration-object-attribute-e

5042
span
5038
reason

5043
span
5036
elaboration-additional

5044
span
44
reason

5045
span
5049
Problem-Solution

5046
span



5047
span



5048
span
5049
Problem-Solution

5049
multinuc
5050
elaboration-additional

5050
span
5051
span

5051
span
5058
span

5052
span
5053
elaboration-additional

5053
span
5054
span

5054
span
5055
span

5055
span
5011
elaboration-additional

5056
span
49
elaboration-additional

5057
span
5051
elaboration-additional

5058
span
5063
span

5059
span
5062
span

5060
span
5061
span

5061
span
5059
elaboration-additional

5062
span
5058
antithesis

5063
span
5030
elaboration-additional

5064
span
5054
elaboration-additional

5065
span
5066
Same-Unit

5066
multinuc
5068
span

5067
multinuc
5066
elaboration-additional

5068
span
5084
span

5069
span
62
elaboration-additional

5070
span
5078
span

5071
multinuc
65
example

5072
span
5076
consequence-n

5073
span
5074
span

5074
span
5076
span

5075
span



5076
span
5077
span

5077
span
5070
elaboration-additional

5078
span
5080
span

5079
span
5078
elaboration-additional

5080
span
5068
elaboration-additional

5081
span
5083
elaboration-additional

5082
span



5083
span
5088
span

5084
span
5019
elaboration-additional

5085
span



5086
multinuc
5088
elaboration-additional

5087
span



5088
span
5087
span

