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February 5, 1989


By CBR Staff Writer

We didn’t mention the gossip of renewed interest by Cable & Wireless Plc last week because we didn’t believe there was any truth in it – a view confirmed by Cable & Wireless, which describes the rumours as ludicrous and says that Racal is standing on too high a price earnings ratio in the wake of the excitement in cellular telephone operators: good for Racal, but probably not so good for its share price, is the fact that the company now has some cash from the Racal Telecommunications Plc float, can raise more by selling more shares in the firm in due course, and is thus in a stronger position than most of its siblings to play an active role in the near inevitable restructuring of UK electronics.

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