Dassault, the French aerospace group, has formally confirmed that it is holding preliminary negotiations with Brazilian manufacturer Embraer regarding the purchase of a minority share in the company. \rIn June, prior to the Paris Air Show, Embraer verified that it was looking to secure an investment from a leading aerospace company. Embraer's largest shareholder, the investment banking group Bozaono Simonsen, indicated in August that it was appraising a sale of all or part of its 29 per cent shareholding. Reports in the Brazilian media have suggested that an investor could acquire as much as 25 per cent of Embraer. "Dassault has a long tradition of international cooperation. There can be benefits for both parties. The negotiations are on their way, but we are not at this time at the final stage," said Dassault spokesman Gerard David. \rDassault is part of a group of French companies that is said to be negotiating with Embraer. A formal announcement of its intentions will come in "maybe three weeks," said David, "and it may take three or four months before a final decision is made."\rDassault may not be alone in their interest in Embraer, but rumours in the industry media that British Aerospace and Saab are also negotiating with Embraer for the minority stake are said to be exaggerated. Anders Anderfolk, a spokesman for Saab, said: "We are having talks with Embraer and with other operators as to what we could possibly do together. Today we are not in any kind of negotiations. \r"This is a time for mergers and acquisitions, and everybody is talking to everybody." Simon Raynes, a spokesman for British Aerospace, said that buying a stake in Embraer was only one of "a wide range of projects" being talked about, although he added: "At this stage I wouldn't rule anything in or out." Saab and British Aerospace are cooperating on the new fighter aircraft, which is to be marketed in south America, and, according to British Aerospace, could provide the next generation of fighter aircraft in Brazil. "Cooperation with Embraer could be related to this project, although as yet in an undefined way," said Raynes.\rFurther media speculation that Dassault and Saab/BAe might share the minority stake was denied by all parties. "This could have been the situation before, but it is not at the moment. If there are two proposals, they are in competition, not complementary," said David. This view was echoed by BAe.