NEW YORK (Standard&Poor's) June 4, 2004--BAE Systems PLC (BBB/Stable/A-2) has made an offer to acquire the remaining 71% stake in Alvis PLC (unrated) that it does not already own; the offer values the entire company at £355 million. Standard&Poor's Ratings Services said this development does not affect its ratings or outlook on BAE Systems. Alvis, the U.K.-based armored vehicle manufacturer, has agreed to the offer and withdrew its support of an earlier, less attractive, proposal to be acquired by General Dynamics Corp. (A/Negative/A-1). The purchase of Alvis would enhance BAE Systems' capabilities and competitive position in the land sector. The transaction should have only a modest impact on BAE Systems' financial profile, given its improved cash
