A statement to investors by Thus the company has confirmed the rejection of an approach by rival network company Cable & Wireless.
Thus has said that its board unanimously rejected the Cable & Wireless offer on the basis that it fails to reflect the standalone value of the Thus business and denies Thus shareholders the opportunity to benefit from the substantial synergies that the Board believes will be available from the long-anticipated consolidation in the UK telecommunication market.
In the opinion of the Thus Board, it’s next-generation network and customer contracts will be critical to maximising the potential of C&W UK. Thus shareholders deserve recognition of this value in the Proposal price.
Thus is confident in its future as an independent group and cites that the company has invested to build an extensive UK fibre optic network which, unlike those of major competitors, has been designed to support next-generation communications since its inception.
The unique characteristics of this infrastructure enables Thus to deliver customer benefits, evidenced by the fact that next-generation services accounted for over 70% of new major corporate and public sector contracts signed in the last financial year. The new products, services and technology that the Company currently offers, with new services under development from its proven service innovation capability, are expected to drive further growth.
Over the last 9 days, there have been three separate telephone discussions and a meeting between the Chairmen of THUS and of C&W and the advisers to each company have met. In a letter dated 4 June 2008 the Chairman of C&W referred to seeking agreement “within the narrow price band which our respective shareholders would understand and consider sensible”.