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Boeing, BAE in talks?
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April 10, 2000: 7:39 a.m. ET
Aerospace giant reportedly in talks to merge with British defense group
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LONDON (CNNfn) - U.S. airplane maker Boeing Co. declined to comment on reports Monday that it was in talks with Britain's BAE Systems over a possible $46 billion merger.
"We have a close relationship with BAE on many programs and are frequently talking to them, other partners and suppliers about further opportunities." Carolyn Harris, director of communications for Boeing in Europe, told CNNfn.
BAE called the report "pure speculation".
 Boeing and BAE, the world's second-largest defense contractor, work together on a number of projects, including the Harrier jump jet for the U.S. Marine Corp, and are bidding to supply the British government with missiles for the Eurofighter.
Analysts said BAE might be seeking closer ties in the U.S. as its partners in the airliner consortium Airbus Industrie - France's Aérospatiale, DaimlerChrysler's Dasa and Casa of Spain - merge to form European Aeronautic Defense and Space Co. BAE owns 20 percent of Airbus, for which it makes airliner wings.
Britain's Sunday Telegraph newspaper at the weekend cited industry analysts as saying the two aerospace companies were negotiating quietly ahead of the U.S. elections. The report warned that any merger could face an obstacle in the form of BAE's civil airplane business.
BAE has been targeting the U.S. market for further acquisitions to boost its defense activities, but any takeover would have to overcome U.S. official opposition to permitting European companies to make inroads into the U.S. defense industry.
 While the Pentagon has made efforts to encourage transatlantic deals, some parts of the U.S. industry continue to oppose European involvement in "sensitive" military projects.
Shares in BAE rose half a percent to 360.25 pence in London, while Boeing shares traded in Frankfurt rose 0.7 percent to  38. 
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