Cable & Wireless confirms Energis interest

Cable & Wireless has confirmed it is looking at buying Energis - but is keen to point out a deal is not a foregone conclusion.

C&W chairman Richard Lapthorne told delegates at the company's annual general meeting that it had approached the relevant parties at the rival telco over a possible buyout.

He said that C&W "cannot be certain that a transaction will result" and added that another announcement about the union would follow "in due course".

Speculation first blossomed on Monday, with reports putting the deal at around £700m

Analysts have said a marriage between the two firms would be a winner for both firms, with C&W able to tap Energis' juicy corporate customer list.

Shareholders were equally impressed, as C&W's share price has climbed by two per cent since this morning.