Westland makes Apache and Lynx helicopters

Chairman Sir David Lees said the company was negotiating with Finmeccanica, which already owns 50%, to sell its half of the business.

The sale of the business, which includes Yeovil-based Westland, could fetch more than £800m.

"A further announcement will be made when appropriate," Sir David said.

His comments came in a statement to shareholders at GKN's annual general meeting.

Finmeccanica is due to hold its annual general meeting next week and there was speculation on Thursday that a further announcement could be made then.

Changing fortunes

Westland and Agusta merged in 2000, creating a company with an order book totalling £5.33bn.

The Westland factory in Yeovil, which employs more than 4,000 people, makes Lynx and Apache Helicopters.

In 2002, Westland's Weston-super-Mare plant closed, with the loss of 350 jobs

In June last year, the company's fortunes turned around with Westland Helicopters landing a contract with the Japanese Defence Agency worth more than £300m.

Earlier this week Derek Simpson, the general secretary of Amicus, visited the Yeovil site and stressed the future of the company depended on continued orders from the UK Government.