C&W sheds US operation
Firm sells C&W America to Gores Technology Group
Cable & Wireless (C&W) has sold 'substantially all' the assets of C&W America (CWA) for $125m to Gores Technology Group.
Francesco Caio, chief executive of C&W, said the cost of bailing out of the US is expected to be about £300m. As part of the deal, CWA has entered Chapter 11 Section 363.
Cesar Bachelet, analyst at Ovum, said: "Chapter 11 made CWA more attractive to potential buyers, and C&W has managed to dispose of the business quite cheaply. Earlier estimates had put the cost at £1bn."