Thus passes to C&W

Buyer reveals company already bought (mostly)

Posted in Telecoms, 1st September 2008 12:10 GMT

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Thus, the company formerly known as Scottish Telecom and owner of the Demon Internet brand so beloved by an aging demographic, has recommended its shareholders accept an 180 pence offer from Cable & Wireless that will result in the delisting of the business.

Cable & Wireless originally offered 165 pence a share for the company, but when that was rejected it upped its offer to 180 pence at the end of June. At that time the board was prepared to consider the bid but not recommend it, advising investors:

"It is the Thus board's view that the offer is not such a compelling proposal that the Thus board could give a recommendation to Thus shareholders to accept the offer at this time."

That position remained until Cable & Wireless revealed it already owned, or had agreement to buy, 78.5 per cent of the business, promoting a rethink by the Thus board:

"While the board remains confident in the standalone prospects of Thus, the board recognises there are risks of remaining as a minority shareholder in Thus in light of C&W's stated intention to de-list Thus shares upon the offer being declared unconditional."

Shareholders are being recommended to accept the offer, which is open until September 9. ®

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