C&W reportedly rebuffed by Exodus Communications
2001-04-26
Terms and Conditions
Cable and Wireless PLC, the telecoms group that is hunting
for acquisitions, was recently rebuffed by Exodus Communications after making
an approach to the U.S. web-hosting company, The Financial Times reported,
citing sources close to the discussions.
Exodus rejected C&W's overtures because it believed its current stock
market valuation was too low, the newspaper said.
However, the approach is evidence that C&W is searching for takeover
targets in an attempt to spend some of its cash pile, the article added.
C&W yesterday added to its cash reserves when it sold part of its
shareholding in NTL, the UK cable operator, for about 100 mln stg. It placed
5.3 mln shares, representing about 1.9 pct of NTL, with institutional
investors.
The placing takes the cash that C&W has available to spend to more than 7
bln stg.
Although the net cash position at the end of March is thought to be about 3
bln stg, it will soon receive a further 1 bln stg from the disposal of shares
in Pacific Century CyberWorks.
The company will also raise 3 bln stg from the sale of Optus, its
Australian subsidiary, to SingTel.
So far, C&W has kept quiet about its plans. But senior management is coming
under pressure from shareholders to make clear whether it intends to make
acquisitions or return the cash to investors, the newspaper said.
C&W is thought to be interested in buying web-hosting or internet service
companies in the U.S. to complement the internet backbone it bought from MCI
after the telecom group merged with Worldcom, according to the newspaper. ml/
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Terms and Conditions
Copyright© 2000 LEXIS-NEXIS, a division of Reed Elsevier Inc. All rights Reserved.
quamnet.com |
