WORKERS at Smiths Aerospace in Hampshire believe that a £2.4 billion takeover will be positive news for the company.

As reported in later editions of yesterday's Daily Echo, the major Hampshire employer is likely to be bought for £2.4 billion by America's General Electric.

The approach by the world's second biggest company by market value sparked fears of possible job loses in the new combined firm.

General Electric, the world's biggest maker of jet engines, already employs 16,000 people in the UK and now plans to review the structure of the two operations.

Bosses said it was too early to comment on the future of Smiths Aerospace UK's operations and staff.

Jeff Immelt, chairman and chief executive of General Electric, said: "We view this as an additive plan and not a consolidatory plan."

One Hamble worker, who did not want to be named, said: "It's not right to say we are worried about our jobs. They told us this morning that it was business as usual.

"This is a positive thing for the company. Workers here aren't concerned. This is a big factory and it's got a lot of work.

"People here have seen all this before - they've been through it five times."

Whatever the deal holds for staff, it's a bonanza for Smiths shareholders, who will divide more than £2 billion of the sale price between them if they vote to back the sale.

Smiths Aerospace Hamble Aero-structures, in Kings Avenue, Hamble, employs about 1,000 people, and a second facility, in School Lane, Chandler's Ford, employs a further 100 workers.

The aerospace arm is one of four divisions in the Smiths Group, alongside detection, medical and speciality engineering.

It employs 11,000 UK staff and supplies aircraft components, such as landing gear parts, cargo doors and propellers. It is also a military supplier, supplying Eurofighter parts and producing in-flight refuelling equipment, gun pods and weapon pylons.

Smiths chief executive Keith Butler-Wheelhouse said that the decision to sell the aerospace arm was made last autumn. The move reflects the need for suppliers to be big enough to win a slice of the next round of major Boeing and Airbus contracts, as well as to cash in on increased US military aerospace spending.

Smiths Aerospace is the latest in a string of big Hampshire names taken over by overseas firms.

Southampton docks owner ABP was bought in a £3 billion deal by a consortium of foreign investors, as was Southampton Airport owner BAA.

The P&O container shipping empire also went overseas, with its ports business sold to Dubai Ports World for £3 billion and its container line sold to Scandinavian shipping firm Maersk for £1.5 billion.