Cable & Wireless sells stake in French mobile firm
Tuesday 22 June 1999
C&W sold the stake, on which it will record a pre-tax profit of pounds 525m upon completion in mid-July, to parent company Bouygues, which has construction and other interests.
Bouygues, under a shareholder agreement governing the unit, exercised its option to pre-empt a similar offer from unnamed financial investors who were not shareholders in the telecoms venture. Last year, C&W sought to sell the stake to Telecom Italia as part of a plan that soon collapsed to create a long-term strategic cooperation pact between the companies.
"We are pleased to have settled the matter of this sale, which is part of our programme of focus on businesses where we have management control or substantial influence," said Stephen Pettit, executive director of corporate development. In recent months, C&W has again sought to narrow its far-flung interests and now plans to concentrate on providing services to business and building a global presence in handling Internet traffic.
Since C&W originally put the Bouygues interest up for sale, the value of mobile assets has risen sharply, although minority stakes are often discounted in comparison to the fuller valuations given to entire companies or controlling interests.
Meanwhile, Deutsche Telekom, which sources say has effectively withdrawn from the auction by refusing to up its bid for One2One, refused to comment on the matter yesterday. One2One is co-owned by C&W and MediaOne.
ABN Amro, house broker to C&W, has put a pounds 10bn value on One2One, Britain's smallest mobile company, even though it has yet to turn a profit. Germany's Mannesmann is a declared bidder, while France Telecom and French conglomerate Vivendi are also believed to be in the running.
- 1 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 2 Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
- 3 Germanwings plane crash: I have depression. That doesn't make me a psychopath
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...