Pacific Century Cyberworks, the Hong Kong-based company that had been linked with a move for Cable & Wireless, has pulled out of a bid for the troubled UK telecoms group.
It was earlier reported that PCCW had tabled a £2.4 billion offer (see
C&W Subject Of Takeover Speculation) but it has now ruled itself out of a takeover claiming that the outcome of any approach for C&W is ‘unpredictable’ and would lead to ‘continuing uncertainty’ for the firm.
Many analysts had doubted the sincerity of PCCW’s interest and concerns expressed by investors in the Far East eventually led to a climbdown. The company is now excluded fom making any approach for C&W for six months.
Texas Pacific, the private equity firm that joined forces with PCCW has reserved the right to pursue takeover negotiations alone but will only do so if requested to do so by the C&W board.
The future of Cable & Wireless remains uncertain although it is thought that other private equity groups including Apax Partners, Permira, Carlyle Group and Spectrum could now be willing to make formal bids for the company.
Shares in the telecoms carrier were up 2.5p at 67p by mid-afternoon today.
