C&W 'completes' Thus purchase

Published on Wednesday 1 October 2008 21:29

EXECUTIVES from Cable & Wireless have begun meeting staff at Thus after the London-based group effectively took control of the business yesterday.

C&W declared its 180p a share offer for the Glasgow-based firm unconditional yesterday, and indicated that Thus's financial accounts will now be consolidated into its own.

It has also begun outlining its plans to Thus staff.

David Crawford, C&W's customer services manager, who will head the integration of the businesses, and Jim Marsh, the chief executive of C&W's Europe, Asia & US business, have been in Glasgow, where they

are said to be telling staff that, following the deal, the "landscape in corporate telecommunications has changed".

While the combined group will still be dwarfed by market leader BT, it will be in a much better position to challenge its dominance.

The Glasgow-based group will be known as Thus, a Cable & Wireless Business, at least in the immediate future.

C&W revealed yesterday that it owned or had approval from shareholders representing 85.2 per cent of Thus's shares.

While most institutional investors have already accepted the deal, a number of passive funds, which as a matter of policy do not accept offers until they are unconditional in all respects, are said to be still outstanding. Once these have accepted C&W expects to be close to the 90 per cent threshold.