BAE Systems began yesterday unravelling its links with Saab with the UK defence group announcing plans to cut its stake in the Swedish group to 20 per cent and relinquish control of the joint venture that markets the Gripen jet fighter for export.

The move will see BAE look to dispose of 15 per cent of its holding in Saab, Sweden's largest defence group, early next year as it cuts the 35 per cent stake it took in 1998 for £269m.