Racal to replace chief executive

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RACAL ELECTRONICS announced at its annual meeting yesterday that it was recruiting a new chief executive to replace David Elsbury, who will retire at the end of the year writes Lucy Baker.

A spokesman for the company said Mr Elsbury was leaving because he was beyond retirement age. But analysts speculated that the move could indicate that "some form of corporate activity is about to take place".

Speaking at yesterday's meeting, Racal's chairman, Sir Ernest Harrison, said the company would consider selling rather than floating its telecoms business, Racal Telecom. The company has long hinted at disposal as an option but this was the first open announcement. Analysts said that Mr Elsbury's departure diminished the chances of a flotation.