Given that STC Plc has UKP196m cash – and is generating the greens at an enviable UKP1m a day at the moment – that it has borrowing facilities of UKP850m, and that it makes no secret of the fact that it intends to make an acquisition – it insists that ICL profits will be a smaller percentage of the total this year than last – a move for Plessey Co Plc once GEC Plessey Telecommunications Holdings Ltd is safely up and running has to look like a strong bet: GEC Plc has the right to buy the other half of the telecom venture if anyone takes Plessey out, which immediately reduces the net cost of buying Plessey, both STC and ICL need to expand the defence side of their business – and STC and LSI Logic Europe have an embryonic relationship in the semiconductor field that could begin to look much more interesting if STC had Plessey’s chips under its belt.
Content from our partners
