Cable & Wireless May Buy Thus

Cable & Wireless has approached the network operator Thus to discuss a possible takeover.

In a fascinating move that may signal even more consolidation in the comms market the UK number two carrier has signalled that it may be making a move for Glasgow based next generation network operator Thus.

In a statement made to investors Cable and Wireless said:

Cable and Wireless plc (“Cable & Wireless”) notes the recent movement in the share price of Thus Group plc (“Thus”) and confirms that it has made a preliminary approach to the Board of Thus in relation to a possible offer for the company. This announcement does not amount to a firm intention to make an offer and accordingly there can be no certainty that an offer will be made.

In response the board at Thus has issued the following statement:

The Board of THUS Group plc (“THUS” or the “Company”) notes the announcement made by Cable & Wireless plc regarding a possible offer for the Company.

THUS is confident in its future as an independent group, which offers an attractive combination of strong growth and future cash flow generation. The Board remains focused on delivering maximum value for shareholders and will evaluate any proposal from any third party against the value that the Company can deliver as an independent group.

There can be no assurance that any offer for the Company will be forthcoming. The Board urges shareholders to take no action at this time.

A further announcement will be made in due course.