UPDATE 1-BAE management say not looking for another deal

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LONDON, Oct 10 (Reuters) - Britain's BAE Systems isnot looking for a tie-up with another company following thecollapse of its $45 billion merger talks with Airbus parent EADS, its chief executive and chairman said on Wednesday.

The two men, who added that the company's management wouldbe staying in place, said it had a very clear strategy and didnot think the company was itself a possible bid target followingthe failure of the talks.

Asked if they would consider another attempt to merge withEADS, they said only if things had changed politically.

"Certainly not unless we knew that things were extremelydifferent in the European governments," Chairman Dick Olver toldreporters on a conference call.

"I mean a) that they wanted it and b) that the red linesthat (Chief Executive) Ian King described earlier would be easyto achieve. We have very good margins, we have very good qualityof earnings across all of our businesses... and we have a veryclear vision of where the growth is."

The two sides announced the collapse of the talks earlier onWednesday, saying they could not get agreement from the French,British and German governments before a deadline.

Asked if the group would consider rewarding frustratedshareholders with a share buyback, Olver replied: "We've beenvery clear about the priorities for the use of capital and sharebuybacks is covered in that regard and as and when the balancesheet allows it's something we'll consider."

Asked if they would consider casting around for other dealswith other companies, he said: "no".

King confirmed the German government had been the mainsticking point in the negotiations, rather than the French andBritish.

"That would be an accurate representation," he said.

(Reporting by Kate Holton. Additional reporting by Paul Sandleand Stephen Eisenhammer; editing by Jason Neely)

((kate.holton@thomsonreuters.com)(0044 207 542 8560))