UK ready to sign Eurofighter order -FT

LONDON, May 12 (Reuters) - Britain is set to approve the latest order of Eurofighter jets but is examining ways of containing its cost, according to a report in Wednesday's edition of the Financial Times.

Following intervention by business secretary Peter Mandelson, Prime Minister Gordon Brown has ruled out canceling the order because of the impact on jobs and the risk of damage to Britain's reputation as a reliable industrial partner, the FT said in an unsourced report.

Britain had been opposing the purchase for cost reasons, European defence sources said last month, putting on hold an order for 112 jets costing some $10 billion split between German, Italy and Spain as well as Britain.

The FT said a final decision on the details of the contract payments and production plans was expected within days.

A Downing Street spokeswoman declined comment on the FT report and said there had been no change to the government's position on the order.

An executive of Italy's Finmeccanica (SIFI.MI) said late last month it expected a deal to secure the third round of production of the Eurofighter within a month despite British opposition. [ID:nLT119376]

Finmeccanica is one of the jet's manufacturers, alongside Britain's BAE Systems (BAES.L) and EADS (EAD.PA). They have warned production lines could close with the loss of thousands of jobs from 2012 without a deal. (Reporting by David Holmes; editing by Carol Bishopric)