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Telecommunications industry

Telecoms Giants Cable & Wireless and BT Eye Lucrative US Deals

Strategic Insights

— 1 min read

Cable & Wireless and British Telecom are reportedly close to sealing significant deals in the US, adding to the growing trend of telecoms mergers and acquisitions. Cable & Wireless has dropped a breach of contract lawsuit against US group MCI, with negotiations over the purchase of MCI's expanded internet operations continuing. Meanwhile, BT is said to be in talks with AT&T for an international joint venture, potentially threatening the US company's alliance with Unisource.

Key Takeaways:

  • Cable & Wireless is in discussions to purchase MCI's expanded internet operations, potentially including retail customers, after dropping a breach of contract lawsuit.
  • The European Commission reportedly agreed to the WorldCom-MCI merger if all of MCI's internet business was sold, which could benefit Cable & Wireless.
  • BT is in talks with AT&T for an international joint venture, potentially involving extensive international assets.
  • Any joint venture between AT&T and BT could prompt AT&T to leave its alliance with Unisource and join BT's Concert alliance.
  • MCI's $24 billion merger with WorldCom raised concerns among European regulators, but a new proposal is expected to meet competition concerns.
  • Cable & Wireless' shares slipped 1% to £6.72.5, while BT's shares settled up 1.1% to £7.02.

Statistics:

  • $24 billion: The value of the WorldCom-MCI merger.
  • $385 million: The price of MCI's Internet wholesale business.
  • £6.72.5: The closing share price of Cable & Wireless.
  • £7.02: The closing share price of BT.
  • 1%: The percentage decline in Cable & Wireless' shares.
  • 1.1%: The percentage gain in BT's shares.
  • 7.5p: The gain in BT's stock price.

Sources:

  • "C&W drops lawsuit over $385m MCI deal," The Telegraph, [Source not specified].
  • "BT and AT&T close to joint venture," Business Week.
  • "WorldCom and MCI hold talks with EU," [Source not specified].
  • "Cable and Wireless in talks over MCI deal," [Source not specified].
  • "BT's $385m MCI deal clears EU hurdle," [Source not specified].

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