May 22, 2003 -- (WEB HOST INDUSTRY REVIEW) -- Newly appointed Cable & Wireless (cw.com) CEO Francisco Caio is prepared to announce a radical restructuring plan on June 4, according to a report published by The Times, a British paper. It is believed that Caio will announce plans to dispose of C&W?s struggling U.S. business and look into the possibility of selling its Japanese operations. The potential restructuring would leave C&W to focus on its UK and Caribbean holdings, which are currently generating a profit of about £300 million annually.
The Times says that Caio has informed senior employees of his thinking over the last few days and has appointed Bill Trent, former finance director of Energis as special adviser to the CEO.
Moving the loss-generating U.S. operation would be a welcome change for the company, which has incurred great costs to enter the space. The telecom market is also marked by fierce competition between rival telecom carriers and a number of new entrants.
According to reports, the operation will likely shut down if a buyer cannot be found.
Caio will advise investors of his plans when the company reports its full-year results on June 4.
Cable & Wireless' recent restructuring efforts are part of its overall strategy to increase focus on IP solutions, hosting and Web services.
