Global Crossing comes up trumps with £1bn Racal Telecom arm

NEWS US telecoms newcomer Global Crossing is to buy the telecoms arm of Racal Electronics for £1bn. Global Crossing put in a last minute bid for Racal Telecom beating a reported offer of £750 to 800m from Energis. Global crossing is to spend £0.95bn in cash on the deal, and will also assume £50m in debt. The deal also sees Racal retaining control of two businesses - Translink and Fieldforce - from Racal's telecoms division. This acquisition continues the aggressive expansion strategy that has already seen Global Crossing buy Frontier for $10bn and Cable & Wireless's undersea cable operations for £550m this year. Racal Telecom presently runs a fixed line network along the UK's railway infrastructure, purchased from British Rail in 1995.