The most intriguing story in the UK heavy Sundays yesterday had Plessey Co Plc considering a PacMan defence against GEC Plc’s consortium bid launched with Siemens AG. According to the Sunday Telegraph, one of the options being considered by Plessey is to put together a consortium to make a counter-bid for GEC Plc. One of the most important considerations behind the GEC bid for Plessey was to establish a long-term future for the GEC Plessey Telecommunications Ltd joint venture, and the consortium idea could strike a very attractive chord with 27% shareholder in STC Plc, Northern Telecom Ltd. Northern Telecom is desperate to gain a firm foothold in the European telecommunications market, and getting a stake in GEC Plessey could be its last opportunity to do so. On that basis, the idea of STC joining a consortium that might also leave it with some of GEC’s defence communications interests is not too far-fetched. Also mentioned as a possible consortium member is Thomson-CSF of France – as a buyer for a large part of Marconi. Thomson was also the subject of a report in the Observer that British Aerospace Plc was discussing a joint defence marketing company with the French defence electronics firm – but British Aerospace is said to be keen to create a wider European grouping that would include Messerschmitt – Bolkow – Blohm GmbH too.
