HAMPSHIRE-based shipbuilder VT is reported to have made a bid for the warship and submarine division of BAE Systems.

American defence company General Dynamics is claimed to have joined VT - formerly known as Vosper Thornycroft - in the bid.

BAE Systems said it was evaluating offers for the naval division, which is prime contractor for the Royal Navy's two new aircraft carriers, as well as Type 45 destroyers and the Astute nuclear-powered attack submarine.

The Farnborough-based group said: "There have been expressions of interest. We would have to look at any such ideas or offers on their merits and our priority is shareholder value."

VT Group's experience in shipbuilding stretches back more than a century and the company last year boosted its operation by relocating from Southampton to a new state-of-the-art facility in Portsmouth.

A VT spokesman was unavailable for comment.