Despite the very modest premium to which the shares went, Racal Electronics Plc has every reason to be satisfied at the UKP1,770m valuation put on the Vodafone business by the market on the first day: when we first pointed out the undervaluation of Racal shares if Vodafone were to be valued on the same basis as US cellular operators, way back at the beginning of August last year (CI No 737), we worked out a valuation of UKP2,400m for Vodafone – but that was before the massive change of sentiment post Meltdown Monday.
RACAL ELECTRONICS SHARES AT UKP1,770M VALUATION
