Speculation over dockyard bidders

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There is speculation that two major defence companies could bid to take over Plymouth's Devonport Dockyard.

The news comes amid an unresolved row between the Ministry of Defence (MoD) and the US owners of the yard, KBR.

The MoD is considering taking away KBR's contract to operate the yard after fears it may not have adequate funds after a share flotation.

Now it has emerged Babcock International and BAE Systems would consider a bid if the chance arises.

Compromise fears

Other potential bidders could yet emerge for the yard which employs about 4,800 people.

The speculation comes a month after the MoD tried to block a share flotation by KBR.

The firm was asked to delay the launch - or risk losing its contract to operate Devonport, western Europe's largest naval port.

There were concerns that Devonport might be compromised by the listing.

The dockyard - the only place capable of refitting and refuelling the country's nuclear submarine fleet - is owned by Devonport Management Limited, in which KBR has a controlling 51% share.

Before the listing, the British Government said it feared that once KBR was separated from parent oil services firm Halliburton, it might not have adequate funds to run Devonport effectively.