British Aerospace May Buy GEC’s Marconi

British Aerospace is likely to agree to buy the Marconi military electronics unit of Britain’s General Electric Co. this week for as much as $13.2 billion, as Europe’s defense technology industry reorganizes, England’s Sunday Telegraph said. BAe, Europe’s largest defense equipment maker, and France’s Thomson-CSF, Europe’s No. 1 military electronics firm, have been in talks with GEC, Britain’s second-largest defense contractor and its biggest engineering company by market capitalization, to buy Marconi. BAe may have outbid Thomson-CSF with an offer to pay in shares and by assuming some debt, the newspaper said, citing no sources. BAe would not comment, and GEC couldn’t immediately be contacted. GEC will choose a buyer at a board meeting Wednesday, the Financial Times of London reported, citing people close to GEC.