The shares of Racal Electronics and Racal Telecom each soared 70 pence yesterday as British Telecom’s 22% investment, McCaw Cellular Communications Inc of Kirkland, Washington, ratcheted the value of cellular companies up several more notches by bidding $120 a share for the 90.2% of LIN Broadcasting Corp, New York it doesn’t already hold, valuing the company at $6,500m, which when stripping out LIN’s seven TV stations, notionally worth $1,280m, puts a per pop valuation on LIN’s cellular interests of $290 – British Telecom paid only $140 for McCaw shares. LIN is worth a premium to McCaw because it has stakes in Los Angeles, New York, Dallas, Houston and Philadelphia.
