Slaughter and May and Clifford Chance (CC) are lining up opposite each other to advise BAE Systems on the proposed sale of its stake in European aircraft maker Airbus, which is expected to raise up to £3bn.

Slaughters is advising UK defence and aerospace group BAE Systems, which last week confirmed that it is in early talks with Franco-German group EADS to sell its 20% stake in Airbus.

CC, meanwhile, is advising EADS. Both firms are regular advisers to the clients. Slaughters last year advised BAE on its high-profile acquisition of US rival United Defense Industries for $4.2bn (£2.2bn), led by corporate partner Frances Murphy, who advised on the UK fundraising.

CC, meanwhile, advised EADS as leader of a consortium that last year won the fight to supply a £13bn fleet of air refuelling tankers to the Royal Air Force following a year of negotiation. CC finance partner Gavin Teague led the team advising the consortium.