VSEL had demanded more than pounds 13 per share, against BAe's pounds 12.50, valuing the company at well over pounds 500m. VSEL would not comment but an industry source said talks were proceeding on a more hopeful basis.
BAe said a further announcement would be made soon. It is expected the issue will be resolved within a week.
BAe shares fell 3p to 439p yesterday, reflecting scepticism in the City over the deal. VSEL's shares rose by 17p to pounds 11.95.Reuse content