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Racal to sell off telecoms arm

Sunday 30 August 1998 18:02 EDT
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RACAL has put its telecoms arm up for sale once again after dropping plans for a flotation. A number of groups are understood to be interested, including Scottish Telecom and Energis.

Sources close to Racal say that the company is looking for up to pounds 800 million for the subsidiary, way ahead of the pounds 450m price tag it was looking for last year when it failed to clinch a deal.

Since then telecommunications companies have enjoyed a good run on the stock market.

Racal wanted to float the company, but now Sir Ernest Harrison, the company's chairman (above), is believed to be looking for a trade sale.

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