BAE and VT abandon Babcock talks

BAE Systems and VT Group have abandoned talks concerning a joint takeover of UK naval services group Babcock International, arguing that the surge in the company’s share price meant it no longer offered ‘shareholder value’. The takeover of Babcock would have heralded the consolidation of the UK’s shipbuilding industry, in line with the stated aim of the Ministry of Defence (MoD) although VT and BAE Systems may still push ahead with moves to restructure the country’s naval sector.