February 6, 2003 — (WEB HOST INDUSTRY REVIEW) — According to reports released this week, new Cable & Wireless chairman Richard Lapthorne refused a takeover offer made last month by Pacific Century Cyberworks that would have valued the company at about £2.4 billion.
In early January, PCCW sent a letter to C&W’s board announcing its interest in discussing a cash takeover of the company, and offering to pay a substantial premium. Lapthorne, who was appointed the company’s chairman on January 10, told PCCW he was not interested.
The offer was reportedly rejected before PCCW had a chance to convey that it expected to pay at least 100p per share, or about £2.4 billion, in cash. C&W shares were trading at 46p at the time, and closed Wednesday at 57.75p.
PCCW , the dominant telecoms operator in Hong Kong, is said to still be interested in discussing a deal, but is not expected to make a hostile move, as it would want a chance to assess the company’s books before seeking financing. At least three banks are said to have agreed to finance the deal, pending access to C&W’s books.
