BAE to bid with Cammell-Laird to build five warships

Oct (Shenzhen: 000069.SZ - news) 18 (Reuters) - Britain's biggest defense contractor BAE Systems Plc will make a joint bid with Liverpool-based shipbuilder Cammell-Laird (Other OTC: LARRF - news) to manufacture five warships for the British government, BAE said on Wednesday.

Cammell-Laird will be the prime contractor to build and assemble the Type 31e vessels, while BAE would lend its expertise to ensure delivery on time and budget, the statement added.

While the statement did not disclose financial details, a Financial Times report suggested the contract is worth about 1.25 billion pounds ($1.65 billion). http://on.ft.com/2yU4yC8

The report said a consortium led by Babcock International (LSE: BAB.L - news) was also likely to compete for the contract.

Last week, BAE said it would cut around 2,000 jobs to tackle dwindling orders for the Typhoon fighter jet and the loss of revenue from Cold-War era aircraft nearing retirement.

($1 = 0.76 pounds)

(Reporting by Kanishka Singh, Editing by Rosalba O'Brien)