BAE signs £2.5bn Oman contract
Britain's BAE Systems said it signed a contract worth approximately £2.5 billion (€3.07 billion) to supply aircraft to Oman, inking its first major deal since the collapse of a $45 billion merger plan.
Europe's largest defence contractor, is hunting for growth as a standalone company after failing to complete a tie-up with the Franco-German maker of Airbus civilian jets, EADS, in October.
BAE said on Friday that the Omani contract, widely expected after talks regarding the deal were flagged earlier in the year, provided for the delivery of 12 Typhoon and eight Hawk aircraft to the country's armed forces starting in 2017.
The Omani deal comes days after BAE warned of a delay in reaching an agreement with Saudi Arabia over the pricing of a contract for 72 aircraft, which is worth around £4.5 billion pounds.
BAE said on Wednesday that its 2012 earnings could take a hit should it not reach an agreement with Saudi Arabia on the pricing of the key contract in the next two months, something it had expected to conclude in the second half of this year.
Shares in BAE fell 1.9 per cent in early trading as analysts said the Saudi deal delay was continuing to weigh on the stock.
"The Saudi delay may have impacted sentiment," Societe General analyst Zafar Khan said.