(2) Racal Chubb Security, the security business, and (3) the “rump” of Racal Electronics, the main business of which was defense electronics, data communications, and networks.

Sir Ernest planned to distribute to Racal’s shareholders: (1) The 80% shares of Racal Telecom it still owned and (2) new shares to be issued for the whole of Racal Chubb. The old Racal Electronics shares would continue to trade and would represent the rump. After the breakup, shares of three different companies would be traded. Sir Ernest also said that he intended to lead a management buyout of the rump after “an appropriate time” once the market established its proper value.