Cable & Wireless completes demerger

29 Mar 2010

UK-based Cable & Wireless (C&W) has completed the demerger of its two business units, and shares in both of the freshly split entities have started trading on the London Stock Exchange. C&W has said that the separation is expected to reduce corporate costs by GBP3 million (USD4.47 million) per year, and as a result of the split there are temporarily 101 companies in the FTSE 100 blue-chip share index.

In November 2009 C&W announced that it would break apart its Cable & Wireless Worldwide (CWW) and Cable & Wireless Communications (formerly known as CWI Group) by way of a demerger on 26 March 2010. The company claimed that the decision to fully separate the units was made as the two businesses had reached a position where they would be best to deliver improved value to shareholders as separately listed companies. In addition the C&W board said that the split would allow both of the units to pursue independent strategies with greater flexibility, while also sharpening management focus. Cable & Wireless Communications operates through four regional operating units in the Caribbean, Panama, Macau and Monaco & Islands, while CWW is a global provider of communications infrastructure, including high quality IP-based managed voice, data, applications and IP-based services, with a focus on large corporate customers, governments, carriers and telecommunications resellers.