Thus soars after C&W buys stake
Thus soars after C&W buys stakeCable & Wireless sweetened its offer for Thus yesterday and snapped up a 29.9% stake in the smaller telecoms firm to
strengthen its hand.
C&W failed to secure a full recommendation from the Thus board for its ￡329m offer but was granted access to conduct
due diligence.
After a weekend of intense discussions between the two sides, C&W made an offer valuing Thus at 180p a share, up
from the 165p it had previously offered. It then spent nearly ￡100m in the first hour of trading yesterday buying a
29.9% stake in Thus at the offer price of 180p.
Shares in Thus closed up 22% or 31.75p to 177p reflecting market expectations that the bid will succeed.
Thus neither endorsed nor rejected C&W's offer but said it was "worthy of consideration by shareholders in the
absence of a better proposal". The company said in a statement: "However, it is the board's view that the offer is
not such a compelling proposal that the board could give a recommendation to Thus shareholders to accept the offer
at this time." Thus had initiated talks with C&W last week after failing to find an alternative suitor.
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