Global to win Racal?
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October 10, 1999: 9:31 p.m. ET
Report has U.S. telecom outbidding Energis to take over UK firm
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NEW YORK (CNNfn) - Global Crossing Ltd. is expected to take control of UK business telecom group Racal Telecom, according to the Financial Times newspaper, thus foiling a bid from Energis, a rival UK network operator.
The Financial Times, quoting "people involved in the negotiations," said that Global Crossing (GBLX) had been won the bidding war with a $1.65 billion all-cash offer.
Energis Plc, a UK telecom group, had been widely expected to unveil a cash and shares deal worth $1.3 billion for the subsidiary of Racal Electronics Plc.
Racal and Energis were not immediately available for comment.
The newspaper said the deal had not yet been formally signed, but if successful would bolster Global Crossing's European network to 17,000 km (10,560 miles).
Global Crossing, which recently bought Frontier Corp., said on Sunday it would soon announce further acquisitions in Europe or Asia where it was now focusing its expansion.
"You can expect an announcement soon," senior vice-president Barry Porter told Reuters.
"We are looking at expanding our geographic reach," he said, adding the company would consider an acquisition if it would take it deep into a market where it wanted a significant presence.
-- from staff and wire reports
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