Thus in race to acquire Cable & Wireless

Thus in race to acquire Cable & Wireless

	Published : Mon, 06 Mar 2006 08:55 By : Amy Watts Print this Story

LONDON: Business telecoms group Thus Group Plc is emerging as a potential bidder for ailing rival Cable & Wireless Plc., according to newspaper reports.

Thus, based in Glasgow, is said to be looking at taking over Cable & Wireless' British business or even attempt at acquiring the entire group, the reports said. If the company goes in for the second option, it may have to depend on backing from external financial agencies, possibly a private equity group as the total cost of such a deal would be around 3 billion pounds, said analysts following the company.

The reports in the City indicated that Thus could easily take over the British operations of Cable & Wireless as it is valued almost nil. It has, however, a pensions deficit of around 200 million pounds and Thus will have to bear this burden.

Cable & Wireless is seriously attempting to sell its overseas operations, cut down jobs by around 3,000 and reduce subscriber base by almost 90 per cent, concentrating on a handful of prime subscribers. The company has a sizeable network abroad, especially in the Caribbean. It had bought Energis last year for nearly 700 million pounds, beating a last-minute offer from Thus.

The company is likely to lose its FTSE100 status this week.

Thus, which provides basic telephony and internet services to businesses, is said to be waiting for Cable & Wireless' share prices to fall below 100 pence to make its first move. The acquisition, as analysts see, will make the company the second largest telecoms group in the U.K. Its chief executive Bill Allan had said that his company would be delighted to welcome Cable & Wireless customers who want to enjoy its services and the next generation network.

He was quoted as saying earlier that anything was possible as regards a move on the Cable & Wireless, but that he was not in a hurry. The company had in February acquired Legend and Your Communications for 70 million pounds.