Cable & Wireless Plc opened proceedings on the London Stock Exchange yesterday morning with a 305 pence a share all cash offer for Telephone Rentals Plc – and the market immediately interpreted the price as a sighting shot and marked the shares up 126 pence to 337p, a 32p premium on the offer price. Cables […]
Cable & Wireless Plc opened proceedings on the London Stock Exchange yesterday morning with a 305 pence a share all cash offer for Telephone Rentals Plc – and the market immediately interpreted the price as a sighting shot and marked the shares up 126 pence to 337p, a 32p premium on the offer price. Cables wants the dominant player in the US PABX marketing business as a direct extension to its Mercury Communications business, but the market is hoping that GEC Plessey Telecommunications, whose ISDX private switch is the jewel in Telephone Rentals’ portfolio, will not want to let the company get away, and will come in with a higher bid. Brokers also looked to Northern Telecom Ltd, Alcatel NV and Siemens AG to ensure a lively battle and a premium price for a company that is not expected to go quietly. Details of the bid – page three.
