BAE denies reports of L3 interest

LONDON, March 21 (UPI) -- Britain's top arms contractor, BAE Systems PLC, denies considering a bid for L3 Communications Holdings Inc., a big New York military contractor.

BAE's denial followed reports in the Guardian Tuesday that it was mulling a $10 billion offer for L3, which recently won a contract to provide explosives detection equipment at Heathrow Airport's Terminal 5.

The newspaper said BAE would fund its purchase of L3 with proceeds from the sale of its 20-percent stake in Airbus, the European aerospace giant.

Last year BAE, whose executives have openly stated their desire to expand in the United States, bought U.S. armored vehicle maker United Defense Industries.