BAE shares fall on Saudi Typhoon contract reports

Posted on: Nov. 27th, 2006 || Source: Reuters | E-mail Article | Print Article

LONDON/RIYADH (Reuters) - Shares of BAE Systems, Europe's largest defence firm, fell 4.4 percent on Monday on reports it might lose a Eurofighter deal with Saudi Arabia if a fraud probe is extended to the Saudi royal family.

The Sunday Telegraph said the Saudi government was set to tear up its Eurofighter Typhoon agreement with Britain and give the jets contract to France if the Serious Fraud Office (SFO) opened Swiss bank accounts allegedly linked to members of the Saudi royal family as part of a long-running investigation.

The report said Saudi Arabia was now considering buying Rafale jets from French aerospace group Dassault Aviation (AVMD.PA: Quote, Profile, Research) and that French President Jacques Chirac was keen to secure a deal.

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