T/O AT 74p16 Dec 2013 23:51
MARKET REPORT: City gets excited as media giant Liberty Global mulls C&W bid
By GEOFF FOSTER
PUBLISHED: 22:28, 16 December 2013 | UPDATED: 22:28, 16 December 2013
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As shares of Cable & Wireless Communications closed 1.77p or 4 per cent up at a two-and-a-half year high of 49p on well above average turnover, the constant buzz in dealing rooms was that John C Malone’s media giant Liberty Global is lurking. He has been running a slide rule over the company for the past couple of months and is now lining up a £1.87billion cash bid worth 74p a share.
Moneybags Malone bought British cable operator and TV firm Virgin Media for around £15billion earlier this year and there has been much speculation of late that he had also approached Dutch cable operator Ziggo with a view to acquiring the remaining stake that he does not already own. But Liberty Global owns UPC Netherlands, the country’s second-largest operator, and the company may face regulatory issues if it buys Ziggo.
Excited speculators are therefore convinced that Cable & Wireless Communication’s days of indepence are numbered. This year it has sold two of its four businesses for good prices, including the Macau and Islands business units as part of its strategy to focus on business on the pan American (Caribbean and Central America) region.
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A successful bid for the group, which is moving headquarters from Holborn in London to Miami, could leave new chief executive Phil Bentley in limbo. The former British Gas chief, who made himself extremely unpopular when he oversaw a doubling in household bills while in charge of the energy giant, takes charge of the telecoms group in the New Year.
Bentley apparently starts on a basic salary of £800,000 a year with a bonus worth up to £1.2million and other share awards worth north of £1million, based on performance.
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What are the odds on there being another clause in his contract which gives him a tasty lump sum pay-out in the event of a takeover and if his services are no longer required? Remember, he is believed to have received pay, perks and pension worth up to £13million when he quit British Gas earlier this year after failing to get the top chief executive job.
Read more: http://www.dailymail.co.uk/money/markets/article-2524913/MARKET-REPORT-City-gets-excited-media-giant-Liberty-Global-mulls-C-W-bid.html#ixzz2ngWnUm7e
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