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UK to award tanks contract to General Dynamics-paper

LONDON, March 21 (Reuters) - The UK government will award a key army contract to U.S. firm General Dynamics' UK arm on Monday, leaving rival British bidder BAE Systems out in the cold, according to the Sunday Times. The first phase of the 4 billion pounds ($6.08 billion) contract to build armoured reconnaissance vehicles will be announced on Monday, the newspaper said. BAE had put forward a jobs creation package in an attempt last week to to secure the deal. The Ministry of Defence said only that "an announcement would be made in due course". General Dynamics UK could not immediately be reached for comment. ($1=.6580 Pound) (Reporting by Rosalba O'Brien; Editing by Hans Peters) Keywords: DYNAMICS/CONTRACT (rosalba.obrien@thomsonreuters.com; +44 20 7542 7717; Reuters Messaging: rosalba.obrien@thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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