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C&W absorbs Energis

£600m deal done

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Energis is now officially owned by Cable & Wireless (C&W) following the completion of the £600m acquisition today.

From Monday, Energis boss John Pluthero takes on a new role as executive director of the Cable & Wireless UK business.

While the deal means that C&W should be able to compete more effectively with BT, it will also have to restructure its business to take account of its new acquisition.

Integrating a company like Energis into its existing business will take time, especially since some 700 jobs have been identified for the chop between now and 2008.

At the same time, C&W must also keep more than an eye on its local loop unbundling (LLU) ISP Bulldog. This mutt has already been in trouble with regulator Ofcom and if C&W wants Bulldog to corner a sizeable chunk of the fast-growing LLU market, then it needs to keep the ISP on a tight lead. ®

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