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May 22, 1997updated 05 Sep 2016 12:03pm

RACAL WITHDRAWS FROM UK POLICE COMMUNICATIONS BID

By CBR Staff Writer

Racal Electronics Plc seems to be making a habit of dropping out of contract bids leaving the field open. It has announced that it has withdrawn from a private finance initiative project that was to construct a secure radio communications system for police forces in England and Wales because it says the commercial risk is too high. The decision leaves a consortium of British Telecom, Nokia and Motorola as the only bidders left. In March, Racal, which has issued two profit warnings this year, dropped out of the competition to run the government’s internal telephone service leaving Mercury Communications Plc as the only bidder. Mercury has just been awarded the contract which it estimates to be worth 5m pounds in the first year and up to 100m pounds over the next five years.

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