C&W sniffing around Energis - confirmed • The Register

C&W sniffing around Energis - confirmed

Finally...

By Tim Richardson • Get more from this author

Posted in Financial News, 25th July 2005 09:18 GMT

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Cable & Wireless (C&W) has confirmed it is sniffing around Energis.

Chairman Richard Lapthorne told investors on Friday that the UK telco is considering making a bid for the alternative telco but said it was too early to say whether a deal would be inked.

Lapthorne's confirmation that it is interested in acquiring Energis ends months of speculation about a possible merger between the two companies.

Speaking on Friday Lapthorne said: "We remain active in the area of corporate development and we are approaching the stakeholders of Energis concerning a possible acquisition. We cannot be certain that a transaction will result and a further announcement will be made in due course."

A week ago Energis and C&W refused to dismiss press reports that they had hired financial advisors to help set up a £700m acquisition leading to an enlarged group with revenues of around £2.3bn.

Lst year C&W snapped up local loop unbundling (LLU) ISP Bulldog making it well poised to attack BT's established retail market by providing voice and broadband services direct to customers. That is, of course, if Bulldog can sort out its customer service issues.

Bringing Energis on board would hand C&W a sizeable chunk of corporate clients such as the BBC, IBM and Tesco. ®