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Cable & Wireless finalises 180p bid for Thus

Cable & Wireless confirmed on Monday that it is in discussions about raising its takeover offer for Thus to 180p a share, valuing the alternative telecoms provider at £329.5m.

A 180p bid would be 9 per cent higher than C&W’s rejected potential offer of 165p and a 65 per cent premium to its share price before discussions began in late May.

C&W said its self-imposed deadline of 5pm on Monday to announce a “firm intention to make an offer for Thus” or walk away from a deal remains. Thus rejected an earlier preliminary approach from C&W’s made on June 6 saying it failed to reflect its standalone value or the “substantial synergies” achievable through consolidation.

Until last week Thus had been unwilling to hold substantial discussions with C&W.

On Thursday, however, Thus chairman Philip Rogerson approached C&W’s chairman, Richard Lapthorne, after it became apparent that rival bids were unlikely at this stage.

Two further telecoms providers – Global Crossing and Colt – had been linked with Thus but no offer has been forthcoming.