GEC Plc is being sued by the Hughes Aircraft Co unit of General Motors Corp over its acquisition of the Ferranti Defence Systems division of Ferranti International Plc. The suit seeks at least $600m in damages on grounds that until it acquired the Ferranti business, it was part of a rival consortium that included Hughes – plus AEG-Telefunken AG – bidding against Ferranti Defence for the contract to build the radar system for the European Fighter Aircraft. The contract was effectively provisionally awarded to Ferranti provided it could convince the customers that it had a viable future, which it did by selling the division in question to GEC. Hughes says it spent millions of dollars developing its rival system over 10 years and also accuses GEC of improperly using its technology. There is considerable doubt that the European Fighter Aircraft will ever be built, with West Germany expected to withdraw its support.
