C&W slaps down spin-off talk

Cable & Wireless has stomped on rumours it is preparing to spin off its business units.

Speculation surfaced in the press earlier this week it was to spin off its two separate business units, UK and International - the latter of which operates in 33 countries abroad - selling to rival telcos or private equity firms. However, C&W has rejected the suggestion that a separation is imminent.

The company said in a statement: "We must be clear that we are in the early stages in terms of both businesses and there is more work to do. As such, any discussion of spinning off our businesses is premature."

Cable & Wireless first split its business into its two units in January 2006 as part of a restructuring, with both units responsible for their respective financial performance.

The statement added: "We are entirely focused on building the value of our two individual businesses - UK and International. This is progressing well with the individual strategies of the business starting to have resonance with customers and shareholders alike."

The telco has seen a number of radical changes recently as part of its restructuring plan, including the decision to divest itself of smaller retail customers and reduce its headcount by half.

It's not the first time rumours of a buyout have followed C&W. Last month some industry watchers linked the company with Deutsche Telekom. France Telecom was also once rumoured to be a suitor.