EAUS sales talks from Cable and Wireless

Talks are currently being held between Cable and Wireless and AT&T with regards to the sale of its EAUS business with plans to focus on a demerger being announced as a consideration.

The second largest telecoms provider after BT, Cable and Wireless, has recently been holding discussions with AT&T, the American based provider over the possibility of selling off its EAUS business, which provides Asia, Europe and the United States with their fixed line broadband connections.

The provider of broadband, mobile, international and domestic services over a fixed-line, Cable and Wireless refused to make any further comments regarding the situation. The company was, however, ‘open to options’ and the long planned demerger was going to be what it would focus on, according to a spokesman for the company.

The demerger of the international operations from its UK business would be postponed according to a recent announcement from C&W recently and the credit crunch was the reason it gave for this.

‘C&W has postponed a final decision until we foresee a sustained period of normality returning to the financial markets,’ it said.

Following the announcements suggesting that there could be either partial or complete approaches for the group the value of the companies shares rose in price. A re-evaluation of the demerger of Cable and Wireless would take place in approximately three months according to a source familiar with the business strategy of the company.
Although sales in the UK had been struggling the crown jewels of the company has been the international arm of C&W for quite a while and the consideration to either sell the assets or split the company had been in the pipeline since May for Cable and Wireless.

The EAUS would apparently be an excellent fit for AT&T according to observers within the industry. The telecom provider who provides network services to corporations, although based in the United States does have Worcestershire and Redditch based facilities, also refused to offer any comments.