Cable & Wireless reaches milestone as demerger goes ahead

Two companies are now listed in the FTSE 100 – with the company's investors given shares in newly created firm C&W Worldwide, which provides services to the world's largest users of telecoms, and C&W Communications, the operator of services in 38 local markets.

Jim Marsh, chief executive of C&W Worldwide, said: "Today is an important milestone in the transformation of C&W Worldwide.

"The passion of our people and our focus on customers has fundamentally repositioned this business over the last four years and created value for our shareholders."

He added: "While we are proud of what we have achieved so far we are committed to further developing the business and creating significant additional value for our shareholders."

The UK-based Worldwide arm will be chaired by current boss John Pluthero, with chairman Richard Lapthorne set for the same role at its sister company.

C&W confirmed last month that the demerger will not lead to payments to its senior bosses amid persistent concerns over its remuneration plans. Its executive pay scheme has been controversial.

More than a quarter of investor votes were cast against pay proposals at last year's annual shareholder meeting.

Mr Pluthero has already picked up 8.3m under the scheme, with payments also due this year and in 2011.

C&W has been working on its demerger for some time, completing a lengthy period of restructuring that has focused the Worldwide division on major corporate clients.

In that time, it has also acquired telecoms firm Energis, including the company's operation in Leeds, and more recently, Glasgow-based provider Thus.

C&W Worldwide aims to offer "mission critical communications" for large users of telecoms.

It targets large corporates, multinational companies, governments and resellers across the UK, Asia Pacific, India, Middle East & Africa, Continental Europe and North America.

C&W Worldwide provides connectivity to 153 countries, including the UK's largest fibre network for business communications.

C&W Communications, which is headquartered in London, focuses instead on fixed line, broadband and mobile services in four operating regions – the Caribbean, Panama, Macau and Monaco.

The group was forced to put its break-up plans on ice last year due to the stock market turmoil and the credit squeeze.

It posted a 30 per cent rise in half-year earnings to 463m, but the improvement was overshadowed by a revision to full-year guidance in the regional business due to weaker Caribbean trading.