City File: British Aerospace

LAST week's favourite stock market game was finding the most obscure company that had a higher market value than Britain's fallen technological giant, British Aerospace. The game got easier during the week, as the shares slumped 50p to close on Friday at 192p, or pounds 724m for the lot.

Foreigners, at least, have noticed how absurd this is, and now own a fifth of the company. They are aware that the British Government could never let the group go under, and that there are hordes of foreign sharks around who would take on the lot, if only for its superb technical expertise, at well above present levels. BAe's problems, with property, defence spending and regional aircraft are real enough, but all of them - and a number of imaginary horrors as well - have been discounted in the share price.

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