shareholders in a British company agreed to sell it the telecoms part of their business for $1.6 billion.

Shareholders in Racal Electronics Plc voted to sell the group's telecoms arm to the Bermuda-based fibre optic cable.

Following a shareholder meeting to vote on the deal, which will help Racal to focus on its industrial electronics arm and lucrative associates, the British conglomerate said that it expected to seal the transaction by the end of November.

Global Crossing pipped British high-tech telecoms group Energis Plc to the post with its bid. Energis was also in talks to buy Racal Telecom.

A special dividend of $2.67 per Racal share -- worth a total $800 million will be paid during January 2000 from a deal which will lead to an exceptional profit of around $960 million.

"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.