The British telecommunications groups Cable and Wireless and BT (British Telecommunications) are holding negotiations that could lead to a merger, C&W announced last night.
Such a merger would create a new world telecommunications giant.
The communique said that no immediate announcement should be expected on the results of the negotiations.
A super group, constituted by Cable and Wireless and BT, would have annual sales of around £19 billion sterling.
The two groups decided on an announcement after continued rumours on the London stock market. Cable and Wireless stock closed up 30.5p at 508p sterling, while BT gained 12.5p to finish at 346.5p sterling. Both groups expressed interest in forming a strategic alliance with Telecom Eireann, but subsequently pulled out of the process. Page 6
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