'Friendly departure' of BAE boss

THE shock departure of BAE Systems chief executive John Weston earlier this year was today described by chairman Sir Richard Evans as 'purely a resignation'.

Questioned by shareholders at the annual meeting in London about Weston's departure after 30 years' service, Evans said: 'There is just no good story behind this. He did not hit or slap the chairman. Indeed, we have remained friends since his departure and we have spoken several times.'

Shareholders also expressed concern about an 'Enron situation' arising at BAE as KPMG has been its auditor since privatisation. Finance director George Rose said the audit fee for KPMG last year was £3.3m and further consultancy fees amounted to £9.1m.

A KPMG partner told shareholders the accountancy group was ' well advanced' in the process of disposing of its consultancy business and expected a deal to be finalised 'within the next two to three months'.

The meeting had earlier been held up for 15 minutes as six protesters were removed after they shouted: 'Stop selling arms to repressive regimes.'