C&W raises bid for Thus

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　C&W raises bid for Thus
        　　    Cable & Wireless has tabled a higher offer for smaller telecoms company Thus after a weekend of crunch talks between the two firms.
        　　    The improved bid of 180p a share values Thus at ￡361m, including debt. News of the bid sent Thus's shares soaring over 20% to 176p as traders anticipated that the higher offer would succeed.
        　　    Having dismissed an earlier offer of 165p a share, Thus has given the new bid an unenthusiastic welcome. The company's board believes that it is worth as much as 252p a share, but the lack of a rival bidder means it may have to settle for less.
        　　    Thus informed its shareholders of the offer this morning, but cautioned that the offer was not suitably "compelling".
        　　    "The Thus board considers that this improved offer represents a proposal worthy of consideration by shareholders in the absence of a better proposal. However, it is the Thus board's view that the offer is not such a compelling proposal that the Thus board could give a recommendation to Thus shareholders to accept the offer at this time," it said.
        　　    Thus, which was spun out of Scottish Power nine years ago, offers telecommunications services in the UK. Many investors are thought to be keen on a deal with C&W, as Thus has never made a profit or paid out a dividend.
        　　    Last year it made a pre-tax loss of ￡2.7m on revenues of ￡576m.
        　　    A successful bid from C&W could prompt a clearout of senior management at Thus, starting with chief executive Bill Allan who is likely to leave with a seven-figure payout.
        　　    Allan is a former C&W veteran, racking up 26 years at the company before joining Thus in 1999. The company was floated on the stock market the same year valued at ￡2.5bn. With the dotcom boom at its height, the company even made it into the FTSE 100 the following year, but its value has shrunk steadily since.
        　　    It suffered a blow last week when it lost out to BT in a lucrative deal to provide home phone services to BSkyB.
        　　    The acquisition of Thus would lead to further consolidation of the business telecoms market and bolster C&W's British revenues as it works towards the demerger of its international assets.