The British government is set to award a £3 billion sterling aicraft-carrier contract to defence contractor BAE Systems, the Wall Street Journalhas reported.
Citing a person close to the government, the Wall Street Journalsaid the decision was a bid to appease labour unions and voters.
British defence secretary Mr Geoff Hoon stirred controversy earlier this month when he was reported to have said BAE was no longer British since it was majority owned by foreign investors.
Analysts took this as a suggestion he was preparing the political ground to choose French rival Thales for the project.
BAE shares had fallen sharply in recent weeks on fears it could lose the contract to Thales.
