Cable & Wireless (C&W) has recently made a bid approach for its rival Thus.
C&W, the international telecoms carrier, plans to address the problem of competition in the UK. The business been struggling to make a profit, and recently revealed their UK full year profit of £45 million on turnover of £1.9 billion.
Thus has also experienced its rivals undercutting prices in the UK market, according to Bill Allen, the Chief Executive. Thus has not yet made a profit although full-year figures published this month suggest that losses are reducing.
Thus have acknowledged the approach from Cable & Wireless, and is quite sure that it will remain an independent group. Any offers will be examined according to the company's focus on delivering maximum value for shareholders.
C&W has not yet made a formal offer for Thus, and will not necessarily bid for the smaller company.
At present, there are about 14 operators in the business telecoms industry. It is expected that the sector is preparing for a round of consolidation.
Thus, was set up by ScottishPower in 1994 and now has a 1,700-strong workforce.
