Investors tight-lipped over BAE feud

LEADING investors in BAE Systems closed ranks to support the troubled board after chief executive Mike Turner accused chairman Dick Olver of knowing 'nothing about our industry'.

The firm's three largest shareholders, Templeton Investments, Fidelity and Brandes Partners - who hold 19.59% of the defence firm's shares - refused to discuss Turner's explosive comments.

One smaller BAE investor, who wished to remain anonymous, suggested that it was in the larger shareholders' interests to keep quiet.

'They have no way of knowing how Turner meant this as they weren't there,' he said. 'Presumably they'll want to talk to the pair of them before they make up their minds on what should happen next.'

Aerospace analyst John Clarke, at Brewin Dolphin, described the situation as 'absolutely ridiculous', though he doubted there was any seismic rift.

'I'm sure it will be a silly flash in the pan. I can't believe its anything more serious after the time they took getting hold of Olver.'

Clarke said he believed that the two were united on building BAE's American arm. A BAE spokesman said that the pair's relationship was 'robust'.

Meanwhile Airbus, in which BAE has a 20pc stake, said it expected to have 200 commitments for its new A350 model by the end of the year.