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Meanwhile, Deutsche Telekom, which sources say has effectively withdrawn from the auction by refusing to up its bid for One2One, refused to comment on the matter yesterday.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 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
iJobs Money & Business
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...