Global Crossing to Buy British Network

Global Crossing Ltd. agreed to buy Racal Electronics’ British phone network for about $1.57 billion in cash, topping a bid by Energis and marking its first foray into Britain. The Bermuda-based company will also assume about $83 million in Racal debt. The deal would give 2-year-old Global Crossing a big boost toward its goal of building a worldwide phone and data network. Racal’s 4,500-mile network, the only one in Britain to carry more data than voice traffic, would help Global Crossing as it targets business customers. Energis doesn’t plan to top the offer, a person familiar with the company said. Energis officials declined to comment. Shares of Global Crossing fell $1.44 to close at $35.06 on Nasdaq. The stock had climbed 41% last week amid takeover speculation. Some investors viewed the Racal purchase as a signal that Global Crossing isn’t close to being bought, analysts said.