Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (888)	4/1/2001 5:20:32 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Predators circle at Cable & Wireless By Clayton Hirst 31 March 2001 Bargain-hungry buyout firms are circling Cable & Wireless, the British telecommunications company, as its cash pile mounts but its share price falls. It is understood Kohlberg Kravis Roberts (KKR), the US leveraged buyout firm, is one company running the slide rule over C&W, with a view to a possible break-up. KKR is one of the world's biggest and most aggressive venture capital companies. It is currently raising a $10bn (£7 bn) private equity fund from European and US investors. C&W is a rarity among European telecoms companies because of its huge cash surplus. The sale last week of its majority-controlled stake in Australian subsidiary Optus to Singapore Telecommunications means that C&W will have £8bn-£9bn in cash and liquid investments on its balance sheet later this year. Its core businesses are valued at £4bn-£6bn, but its market capitalisation stands at just £13.3bn as a result of last month's shock profits warning. Commerzbank last week fanned the flames of speculation that C&W is vulnerable to a bid. In a research report, the German securities house said: "At these levels [a bidder] could afford to make a share offer without seeing any dilution to their own valuation multiples. Cable & Wireless ... is rapidly becoming a classic leverage buyout candidate." Graham Wallace, C&W's chief executive, wants to build up a global internet network capable of handling voice and data. But there are few companies Mr Wallace could buy to achieve the objective. As a result, Mr Wallace is coming under pressure from shareholders to return the cash in the form of share buybacks and increased dividends. One leading shareholder said: "I would like to see what C&W is going to do with its global businesses before it starts giving money back." news.independent.co.uk