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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: barry fowler who wrote (3073)	11/4/1999 6:45:00 AM
From: TechMkt	Respond to of 15615

Here's the whole story. Fez __________________ Thursday November 4, 6:17 am Eastern Time Racal shareholders approve telecoms sale LONDON, Nov 4 (Reuters) - Shareholders in Racal Electronics Plc on Thursday approved a one billion pound disposal of the group's telecoms business to fibre optic cable company Global Crossing Ltd (NasdaqNM:GBLX - news). Following a shareholder meeting to vote on the deal, which will help Racal to focus on its industrial electronics arm and lucrative associates, the conglomerate said that it expected to seal the transaction by the end of November. A special dividend of 167p per Racal share -- worth a total 500 million pounds -- will be paid during January 2000 from a deal which will lead to an exceptional profit of around 600 million pounds. ``We are delighted that our shareholders have voted in favour of the sale, which is not only in their best interest but also those of the business and its employees,' said Racal's Chairman and Chief Executive Sir Ernest Harrison. Analysts had argued that Racal's telecom business, which owns a fibre optic network running alongside Britain's railways, had hamstrung its parent and left it without the resources to beef up its industrial electronics arm. Some analysts also believe the company might now also sell its defence division, which has been valued at between 450 and 500 million pounds, amid rapid consolidation driven by increasing competition in the industry. Bermuda-based Global Crossing pipped British high-tech telecoms group Energis Plc (quote from Yahoo! UK & Ireland: EGS.L) to the post with its bid. Energis was also in talks to buy Racal Telecom

To: barry fowler who wrote (3073)	11/4/1999 11:52:00 AM
From: stilts	Read Replies (1) \| Respond to of 15615

Barry, The convertible preferred pays preferred dividends while the holder waits for the common to appreciate, and, for whatever it may be worth (very little in my opinion), preferred stock would be ahead of the common in terms of rights to the assets of the company in a default situation. It return for that dividend and additional security, some investors would rather forego the profit resulting from the common appreciating from its current price to $45. stilts