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Dassault cut Rafale price by 40 pct in Brazil-paper

Fri Nov 6, 2009 2:21am EST

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PARIS, Nov 6 (Reuters) - French aircraft manufacturer Dassault Aviation (AVMD.PA) has cut the price of its Rafale fighter jet by 40 percent to boost the chances of selling 36 to the Brazilian army, French paper Liberation said on Friday.

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"On the French side, there are fears that this discount is not enough to clinch it," said the paper, citing "good sources".

Dassault complied with French President Nicolas Sarkozy's wishes, after he committed to getting the price of the Rafale down during his visit to Brazil in September.

The Rafale is competing against Boeing's (BA.N) F18 and Saab's (SAABb.ST) Gripen NG, both of which would be cheaper for Brazil's Army, Liberation said.

The multirole combat aircraft is still seeking export buyers, despite major efforts by French authorities. Detailed negotiations over the possible sale of 60 Rafale aircraft to the United Arab Emirates are underway while Kuwait said in October it was hoping to buy Rafales and was awaiting terms from Paris. [ID:nLL280569]

Contacted by Reuters, a Dassault spokesman declined to comment on the report. (Reporting by Laure Bretton; Writing by Helen Massy-Beresford; Editing by David Holmes)

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