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BAe shares limp up 13p

Michael Harrison
Thursday 24 September 1992 18:02 EDT
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BRITISH AEROSPACE shares staged a partial recovery yesterday, spurred on by stock market hopes of a break-up bid for the defence, aircraft, cars and property group, writes Michael Harrison.

The shares closed 13p higher at 126p. However, this is still 73p down on their level on Wednesday morning before BAe announced half-year losses of pounds 129m, a pounds 1bn rationalisation of its regional aircraft business and 3,000 job losses.

Lord Weinstock's GEC is still seen as the most likely candidate to mount a bid, although John Cahill, BAe's chairman, maintains the company's finances are sound and that it is not in need of a rescue.

The shares were also helped by reports that Airbus, the four-nation aircraft maker in which BAe has a 20 per cent stake, is about to share in a dollars 4bn order for 90 aircraft from ILFC, the California- based leasing company.

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