Cable & Wireless confirmed on Monday that it is in discussions about raising its takeover offer for Thus to 180p a share, valuing the alternative telecoms provider at £329.5m.
A 180p bid would be 9 per cent higher than C&W’s rejected potential offer of 165p and a 65 per cent premium to its share price before discussions began in late May.
C&W said its self-imposed deadline of 5pm on Monday to announce a “firm intention to make an offer for Thus” or walk away from a deal remains. Thus rejected an earlier preliminary approach from C&W’s made on June 6 saying it failed to reflect its standalone value or the “substantial synergies” achievable through consolidation.
Until last week Thus had been unwilling to hold substantial discussions with C&W.
On Thursday, however, Thus chairman Philip Rogerson approached C&W’s chairman, Richard Lapthorne, after it became apparent that rival bids were unlikely at this stage.
Two further telecoms providers – Global Crossing and Colt – had been linked with Thus but no offer has been forthcoming.