Arms Maker BAE Wins U.S. Military Contracts
British arms manufacturer BAE Systems may be under a cloud in Britain over reports that it made secret payments to a Saudi prince in connection with the largest arms deal in the country's history, but that doesn't mean it can't still get multimillion dollar contracts from the U.S. military.
The U.S. Department of Justice is investigating BAE, which denies wrongdoing, over allegations that the U.S. banking system was used to make payments to the prince. And the Sunday Telegraph reports that Britain's Serious Fraud Office is about to start interviewing company executives about its dealings in Romania, the Czech Republic, Tanzania and South Africa.
Meanwhile, The Associated Press reports that the U.S. Army is giving BAE's U.S. subsidiary a $183 million contract to produce thermal weapon imaging equipment for U.S. soldiers in combat operations.
That follows Thursday's announcement that the U.S. Navy gave BAE Systems a $212.4 million contract to build Mine Resistant Ambush Protected vehicles. And there was more good news for BAE:
Last week, a government panel that oversees foreign investment in the U.S. approved a pending $4.1 billion buyout of armored vehicle maker Armor Holdings Inc. BAE proposed the acquisition on May 7 as part of a bid to tap into a heavy demand for American military for vehicles in Iraq and other war zone. Armor Holdings is one of the nine companies vying for a stake in the MRAP program.
3:25 PM ET | 07- 2-2007 | permalink
