BUZZ-Babcock: stock slumps after US rival wins UK govt contact
** Babcock falls as much as 5.6 pct after US rival Leidos snaps up UK government contract
** Babcock had formed JV with logistics firm DHL for the LCST contract
** LCST project is a programme to outsource commodity procurement, warehousing and distribution services
** Biggest one-day fall for Babcock shares since March 2014, second top faller on FTSE 100 and among the most traded
** Pares some losses to last trade down 3.8 pct
(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)