C&W makes approach on Thus

UK-based carrier Cable & Wireless said Wednesday that it has made an approach on smaller fixed line operator Thus, which also owns the Demon brand, bumping up the company’s share price.

C&W said however that there is no certainty the discussions will result in an offer being made.

“Cable and Wireless notes the recent movement in the share price of 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,” the company said in a statement.

Last week, C&W said it is considering splitting the company into two parts, as it reported a decline in annual profit. The company said that profit for the year to end March 31 fell to £220m from £234m in the pervious year. Revenues declined from £3.34bn to £3.15bn over the same period.

At a press conference on the financial results, the company revealed that it was considering a “demerger, rationalisation of the portfolio or leveraging and returning capital to shareholders” as its options and intends to put a strategy into action in a 2008 – 2009 timeframe.