C&W shares higher on speculation of 800p/shr European bid - dealers
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Date: Monday, March 16, 1998
Source: AFX
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LONDON, AFX via NewsEdge Corporation : Shares in Cable & Wireless PLC featured among the best performing FTSE stocks in early afternoon trade on rumours that the group could be the target of an 800 pence per share bid from a continental European telecoms company, dealers said.
"The rumour is of a bid within a fairly short order at 800 pence a share organised by Lazard Freres", one dealer said.
Analysts pointed to the European partners in the Global One telecoms consortium, Deutsche Telekom AG and France Telecom, as the most likely potential bidders.
It is understood Global One, which also includes Sprint Corp of the U.S., has approached C&W in the past to try to draw the group into the alliance.
One analyst was sceptical as to whether Deutsche Telekom, which is over 200 pct geared, or France Telecom could afford such a deal, which values C&W at over 18 bln stg.
However, the companies have acted in tandem on stake purchases in the past, and with strong cash flows raising funds would be feasible. Both took 10 pct stakes in Sprint to cement the Global One alliance.
A spokesman for C&W said the company's policy is not to comment on market rumours or speculation.
At 1:11 PM C&W shares were 18 pence higher at 693.
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