Sponsored by
Cable & Wireless 'to unveil demerger plan'
Telecoms group Cable & Wireless is planning to announce a £4.5bn demerger of its international operations as early as this month, according to a report yesterday.
The firm, which has been widely speculated to be planning a break-up, is thought to be holding a board meeting to discuss the plans on September 29 with a view to unveiling details soon after.
The Sunday Telegraph said the plans will see shareholders receive one share in its UK division and one share in Cable & Wireless International for every one they own.
C&W fuelled rumours of an imminent spin-off of the international arm in May when it said it was "demonstrating the necessary momentum" for it to consider the next steps towards boosting shareholder value.
It has already taken action to put its main UK defined benefit pension scheme on a firmer footing, with the scheme now fully funded following the latest actuarial valuation.
And it further de-risked the pension scheme earlier this month by offloading 1bn of liabilities under a deal with insurer Prudential.
C&W reported better-than-expected annual results in May, posting underlying earnings of 605m for the year to March 31, again of 23 per cent on a year ago.
It has reorganised its operations in recent years so it is focused on serving larger corporate customers with higher margin internet services.
C&W declined to comment.
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Wednesday 23 May 2012
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