Cable & Wireless set to delay rumoured demerger

20 Oct 2008

British broadsheet The Times is reporting that UK telecoms group Cable & Wireless (C&W) is to postpone plans for a demerger until next year as a result of the global financial crisis; the group had been expected to announce the demerger on 10 November, when it reports its half-year results. It is understood the decision to delay the process has been taken as C&W’s board is concerned that it is not the right time for the transaction due to uncertainty in the stock market. Plans to split its UK and international operations have never been officially confirmed, although the group had noted that it was considering options for ‘value realisation’ in this financial year. With estimates that any split would take at least three months of planning, it is believed that the earliest any break-up would come is now June 2009.

United Kingdom, Cable & Wireless (UK)