Securicor lacks faith in Cellnet

Rumours that Securicor is about to sell its stake in Cellnet have resurfaced following lacklustre interim results from the security, distribution and telecoms firm.

Mobile operator Cellnet is 60 per cent owned by BT and 40 per cent owned by Securicor. Past attempts by BT to make Cellnet a wholly owned subsidiary were blocked by the Conservative government. However, industry watchers claim the political will is now in place to allow BT to go through with the deal.

Although profits and interest from Securicor's stake in Cellnet fell from £51m to £45m for the last two quarters, Securicor could still expect to make anything between £2bn and £4bn from a sale, according to analysts. The recent rise in value of Vodafone and Orange has also fuelled speculation that the time is right for a sell-off.

Securicor's total pre-tax profits for the six months ended 31 March 1998 were £43.6m. Turnover was £581m, down 14 per cent from last year.