A UNION leader is seeking reassurances about the future of hundreds of jobs in Newcastle after BAE Systems successfully bid for tank maker Alvis Vickers.

Alvis, which employs 450 in Newcastle, and more than 1,000 across the UK, accepted an 11th-hour bid of £355m from BAE Systems which outgunned a £309m offer from a US company. General Dynamics Corporation (GDC) has conceded defeat to defence and aerospace group BAE.

Vickers, a Tyneside insitution dating back to 1847, became part of the Alvis group in September 2002, when it was bought for £16m.

The BAE buyout, which caught the City by surprise, means Alvis' defence equipment will remain in British hands.

GDC had been given regulatory approval by the Department of Trade and Industry for its takeover bid.

Following news of the buyout, Amicus called for urgent talks with Alvis to discuss concerns over possible job losses.

National officer John Wall said: "We are optimistic that BAE Systems recognises that the success of Alvis is due to the commitment of its world-class workforce.

"However, we note the value placed on shares by BAE Systems and hope they do not intend to recoup the difference between the previous bid by GDC, which could mean job losses.

"We will be seeking an immediate meeting with management in order to discuss the meaning of the last-minute nature of the bid and to seek reassurances and safeguards for Alvis as an icon of the armoured vehicle market."

Alvis, which employs 2,800 people worldwide, makes vehicles ranging from battle tanks to armoured personnel carriers.

BAE Systems, which already owns 28.7 per cent of Alvis, said the proposed deal was to the benefit of future Ministry of Defence programmes and the UK armed forces.

The board of Alvis said it dropped its earlier recommendation of the General Dynamics bid because of the higher offered by BAE Systems.

Chairman and chief executive Nicholas Prest said: "BAE Systems is a leading international defence contractor whose activities complement those of Alvis."

The bid by General Dynamics, tabled in March, was due to close on Monday, although only 22 per cent of Alvis shareholders had backed the deal by Wednesday.

The Ministry of Defence also raised concerns about data confidentiality and maintenance of a UK capability to develop, operate and maintain military capability.

GDC had hoped the purchase would enable it to grow further in the UK and Scandinavia.