Cable & Wireless is holding discussions with US-based AT&T about a potential sale of its EAUS division.
EAUS, which is based in the UK, provides Asia, Europe and the United States with their fixed-line broadband connections. The business has been valued at £1bn.
Britain's second-biggest telecoms provider after BT, has held talks with American-based AT&T over a possible sale of its EAUS business, which provides fixed-line communications in Europe, Asia and the United States.
It is thought that EAUS would be very suitable for AT&T, which provides corporate networking services.
C&W is, according to news reports, open to options, but is focusing on the demerger of its UK operations from its international business, which is being postponed due to the current unstable markets.
It is understood that the demerger will be looked at again early next year. Its international operations have been much stronger than that of Britain's for a long while.
