Interest threat on BAe sweeteners
This could take BAe's repayment to the Government to more than pounds 60m, putting further pressure on the finances of the ailing defence, aircraft, property and cars group.
The EC's 17-strong Commission had been expected to issue a fresh order for repayment of the pounds 44.4m this Friday, following a report into the affair by Sir Leon Brittan, the competition commissioner.
But EC sources said yesterday that a decision had been postponed until September at the earliest, so that Sir Leon's officials could examine whether BAe should also pay interest on what Brussels regards as illegal state aid.
The disclosure that the EC was poised to issue a fresh demand for repayment of the sweeteners prompted an 11p fall in BAe shares to a close of 179p.
BAe's controversial pounds 150m purchase of Rover in 1988 was accompanied by a pounds 547m injection of state aid from the Government. It subsequently emerged that BAe had received an additional pounds 44.4m in sweeteners that had not been approved by the EC.
The Commission has already ordered the Government to recoup the pounds 44.4m, but BAe successfully appealed to the European Court of Justice, which ruled in the company's favour in February on a legal technicality.
Sir Leon immediately reopened his investigation. BAe is entitled to appeal against any fresh order for repayment, but should it lose, then the time taken on court proceedings could be taken into account in deciding the interest.
- 1 Kylie Jenner challenge: Bizarre lip suction device inspired by Kardashian sister goes viral
- 2 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
- 4 Bruce Forsyth backs assisted dying campaign: 'If I had Alzheimer's or dementia I would do something about it'
- 5 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
Electronic waste worth £34bn piling up in 'toxic mine', warns UN report
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...