LONDON (Alliance News) - Cable and Wireless Communications PLC late Thursday confirmed it is in talks with US cable company Liberty Global PLC regarding a possible shares and cash takeover offer for C&W.
The FTSE 250-listed telecommunications company, which has operations in the Caribbean and Central America, said that shareholders are advised to take no action, and added there can be no certainty any firm offer will be made, or the terms on which any offer may be made.
Under UK takeover code Liberty Global has until November 19 to either announce a firm intention to make an offer, or walk away.
Cable & Wireless' confirmation followed a report in the Wall Street Journal on Thursday that Liberty Global was in talks to buy the company in a deal that could be worth more than USD5 billion, to be reached by early November.
NASDAQ-listed Liberty Global is headed by media mogul John Malone and owns Virgin Media in the UK.
Liberty has been speculated as a potential acquirer for a number of big names in the UK.
Liberty had been in talks with telecoms giant Vodafone Group PLC over a potential asset exchange. Hhowever, those talks ended with no deal last month. Although Vodafone had denied in June that it was in talks for a potential merger, some saw the talks between the two as a potential route towards convergence in the longer term.
Liberty also has been seen as a potential buyer for ITV PLC, particularly after it increased its stake in ITV to 9.9% in August.
Shares in Cable and Wireless closed up 21% at 70 pence Thursday, the best performer in the FTSE 250. The C&W announcement was made 11 minutes after the London close.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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