FRANKFURT, Oct 30 (Reuters) - German defence group Rheinmetall has tied up with buyout group Blackstone to bid for Airbus's defence electronics unit, two sources familiar with the matter said, in a deal worth up to a billion euros ($1.1 billion).
The consortium is one of the the suitors that has been shortlisted in the sale dubbed "Orlando", alongside private equity groups Cinven, Carlyle and KKR, the sources said.
French peer Thales remains interested, but is unlikely to hand in a competitive offer, they added.
Airbus, Thales, Rheinmetall and the buyout groups declined to comment. (Reporting by Arno Schuetze; Additional reporting by Tim Hepher in Paris and Anneli Palmen in Duesseldorf; Editing by Georgina Prodhan)