Lapthorne Moves Into C&W Hotseat
The beleaguered telecoms firm Cable & Wireless has appoined a new chairman as it seeks a remedy for its well publicised financial woes.
Former British Aerospace financial director Richard Lapthorne takes over from Sir Ralph Robins with immediate effect and has been given carte blanche to make boadroom changes. C&W chief executive Graham Wallace is blamed by many investors for pursuing a misguided strategy which resulted in the company’s share price falling by almost 90% last year.
C&W recently had its credit rating reduced to junk status and it has been forced to put aside £1.5 billion in cash to cover a tax liability dating back to the sale of One 2 One in 1999 (see C&W Stock Nosedives Following Downgrade).
Lapthorne moves from healthcare company Amersham to take up his new role and the appointment sparked a rally on the market with shares in C&W up 8.5p at 46.5p by the close of trading today.
