Byline: ROGER ELGIN and IAN WILLIAMS

MINISTERS are concerned that the privatisation of Rolls-Royce could be marred by evidence of mangement failure and severe technical problems at International Aero Engines (IAE), in which Rools has a 30% stake.

The scrapping of IAE's SuperFan engine which was to have powered Airbus Industrie's newest aircraft, the A340. together with IAE's technical problems on its V2500 engine, has infuriated customer airlines.

The timing could not be worse for Rolls with the company's shares due to go on sale to the public next week. Rolls the sought to play down the seriousness of IAE's problems, but ministers are understood to be deeply concerned that these could cloud what may be...