Feeds

C&W appoints new chairman

Is it enough?

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

ComputerWire logo Cable & Wireless Plc has bowed to the demand of irate investors and has appointed experienced outsider Richard Lapthorne as chairman - a move that is expected to be the precursor to the departure of chief executive Graham Wallace.

The main virtue of Lapthorne, who chairs the boards of five other companies, is that he has no previous connection with C&W. His role will be to try to find a way to extricate the company from its current plight that has brought about a collapse in its share price after it reported a $7.3bn first-half loss.

Investors have not forgiven Wallace after he burned a 6bn pound ($9.6bn) cash pile acquiring web-hosting companies at a time when the whole industry was investing in an over-capacity of such assets. They proved a superb way of burning money as everyone slashed prices to keep customers.

The final straw was the revelation that 1.5bn pounds ($2.4bn) of its remaining 2.4bn pounds ($3.8bn) cash is ring-fenced to cover any tax liability that Deutsche Telecom AG may face after the German incumbent's 1999 acquisition of its 50% stake in wireless operator One2One from C&W. This week C&W said that this money had been placed in an escrow account where it must wait for a "number of years" for a decision from UK tax collectors.

Oblivious to the odium in which the investment community held it, C&W planned to replace retiring chairman Ralph Robins with existing director David Nash. But a meeting between directors and shareholders representing a "significant proportion" of the company's equity in November convinced Nash that someone who had backed Wallace's strategy did not command the confidence of investors and he quit the board.

© ComputerWire

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.