By Alex Scroxton01 July 2008After it was rebuffed last month,
communications provider Cable and Wireless has returned to Thus Group with an
improved cash offer for the assets of the Glasgow-based firm.
Cable and Wireless’ initial bid,
worth around 165p per share, was lodged at the end of May and provoked a flurry
of speculation around its intentions. Rivals said the bid confirmed Cable and
Wireless’ plans to get back into the SME market, which it ditched two years ago,
while others expressed concern that the telco might ditch a substantial part of
Thus’ customer base.
Cable and Wireless’ latest offer of
185p per share represents a 64 per cent premium and values Thus at around £329m.
Thus’ board revealed it has submitted the proposal to its shareholders, but
reiterated that, as before, it would not be recommending
acceptance.
Keith Humphreys, managing consultant
at EuroLAN, thought the deal would be more likely to go through given that Cable
and Wireless had since acquired about 24 per cent of Thus’ share
capital.
“It looks like they [Cable and
Wireless] want to expand the domestic business so that they can spin out the
international business – which is primarily in the Caribbean – as a separate
company,” he said.
Meanwhile, Thus pressed ahead with a
series of enhancements to its channel partner programme towards the end of June
and added Telephone Preference Services (TPS), Carrier PreSelect Service Bulk
Migration capabilities and Network Call Recording to its portfolio. The new
services were backed up with a partner Extranet designed to generate more cross-
and up-selling opportunities for resellers.
Thus product director Nigel Stevens
hoped the move would allow resellers to differentiate
themselves.
”While the focus may be on data
and convergence, it is important that we maintain a high level of support for
voice,” he said.
