How high a price can Racal bring?

Article Abstract:

Williams Holdings PLC offers $1.2 billion for Racal Electronics PLC in an unfriendly takeover attempt. Racal Chmn Sir Ernest Harrison has been disappointed by the fact that investors seem interested in Vodaphone, his cellular phone business, but stock prices indicate that investors do not value Harrison's other businesses. He therefore decided to spin off the cellular phone unit. The question now is whether there be a higher bid or if Williams will increase its offer. Even if another bidder does appear, industry observers say there probably will not be an offer above 60 pence a share, which would amount to $1.44 billion, or $1.87 billion if Racal's debt is counted. Some analysts caution that Williams might encounter difficulties trying to run high-tech businesses such as are typical of Racal's operations.

Telephone and telegraph apparatus, Cellular telephones, Wireless telephones, Williams PLC, column, Acquisition, Takeovers

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Racal effort seen to avert a takeover; British concern's plans include 2 spinoffs and management buyouts

Article Abstract:

Racal Electronics PLC announces that it is divesting the 80 percent stakes it has in Racal Telecom PLC and Racal Chubb Security Group, distributing stock to shareholders and allowing management to buy out the company's remaining business. The strategy is an effort by Racal to counter possible takeover bids. The British company, which is a pioneer in the British cellular telephone market, states that its efforts are a reaction to languishing stock prices and the soaring of its cellular communications business. Racal Chubb, which will become a separately traded company, and Racal Telecom are valued at around $6 billion. Analysts note that Racal Telecom could become a sought-after-acquisition even on its own.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Securities, Cellular telephone equipment industry, Business planning, Divestiture, Divestment, Racal Telecom PLC, Racal Chubb Security Systems Ltd.

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Philips sees $1 billion loss in reorganizing 2 divisions

Article Abstract:

Philips NV announces that the company will take a $1.44 billion charge against earnings and will eliminate about 10,000 European jobs. Philips is attempting to revive its computer and electronic-component divisions. According to Jan D. Timmer, who has been elected president and chairman of the management board at Philips, the company will lose about $1.07 billion in 1990, on sales of more than $29.95 billion. Some analysts are disappointed, saying that Timmer's plan is vague and that cuts are not deep enough. According to one observer, to reach profitability, Philips needs to cut 50,000 jobs.

Management, Computer industry, Finance, Profits, Layoffs, Philips Gloeilampenfabrieken N.V., Layoff, Cost control, Cost Reduction, Profit, Losses, Timmer, Jan D.

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