Fuming C&W investors move to oust Wallace this week

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Business View: C&W must be joking

Leading shareholders in Cable & Wireless are preparing to take action this week to oust the company's chief executive, Graham Wallace.

Mr Wallace and directors of the troubled telecoms giant will be holding meetings with major investors this week following the decision to withdraw from most of its data operations in the US at the cost of £800m and 3,500 jobs.

Standard Life and Isis Fund Management are among the big investors in C&W who are unhappy about the way the group has appeared to squander more than £2bn on its Quixotic US venture.

The incoming chairman, David Nash, has publicly supported his chief executive. He told investors that changing chief executive would not improve the group's prospects.

Standard Life said: "We are not happy with the current management position. This issue should be resolved sooner rather than later."

Another leading shareholder backed up this position. "Wallace does not appear to be listening. Maybe we need to shout louder."

It is understood that a number of investors have been talking about making a joint approach to C&W to voice their concerns about Mr Wallace. This will be made through the auspices of the Association of British Insurers.

A C&W spokesman said the group felt the strategy and management were right for the long term and it was happy to talk to all shareholders about their concerns.