C&W denies plot on competition

By DAILY MAIL REPORTER
Updated:

 

CABLE & Wireless was accused of plotting to stifle competition in transatlantic telecoms traffic after trying to buy a major rival's cable. Vancouver-based 360networks, in bankruptcy protection, said it recently rebuffed C&W's approach for its transatlantic cable.

It suspected the UK group wanted to shut it down ahead of opening its own cable this autumn. 'We didn't like the uses they had planned for it, so we found someone that intends to operate the system,' said 360.

C&W's new Apollo line will be the biggest cable on the route, able to carry 40m phone calls at once.

SG analyst Sean Johnstone said: 'It looks as if Cable & Wireless was looking to take capacity out of the market.' C&W retorted: 'This is speculation.'

The company did well almost until the end of the telecoms mania. A year ago it still had £6m cash, while everyone else was in debt. But a final spending spree cut that to £2.6bn in March. At 156 1/2p, up 1 3/4p, it is valued at £3.7bn.

Most watched Money videos