As it gets ready to report its financial results for the first half of 2009 this Thursday, Cable & Wireless says it will reignite its effort to demerge its U.K. and international businesses. According to a report in Financial Times, the service provider wants to hatch a plan to list its U.K. and international businesses in separate stock market listings sometime next year.
The effort to break up Cable & Wireless International--a subsidiary that offers wireline services to Caribbean customers--from its British and European wireline Cable & Wireless Worldwide business--was delayed last year due to the weakened worldwide economy. It is expected that Cable & Wireless International will report low earnings this Thursday due to weaker tourist sales in the Caribbean region it operates in.
One unnamed analyst said what has driven the service provider to reconsider its demerger plans was ongoing "pressure from investors." By splitting the two companies up, analysts also believe that Cable & Wireless will become a prime takeover target.
- Financial Times has this article
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