Cable & Wireless Worldwide Plc, which provides telecommunications services to companies including National Grid Plc, will keep its Thus unit which provides wholesale services for smaller companies and colleges.
“The reason we’ve decided to keep it is that it’s an attractive 5 billion-pound market that is really crying out for proper competition with BT,” Chief Executive Officer Jim Marsh said in a phone interview. “We are committed to that market and the Thus business is not for sale.” BT Group is the U.K.’s biggest phone company.
Cable & Wireless Worldwide, which separated from its parent company in March, had been reviewing Thus. Cable & Wireless Plc acquired Thus in October 2008 and recorded a 30 million-pound charge ($43.1 million) to integrate the unit last year.
Cable & Wireless Worldwide did not have a formal sales process for the unit, Marsh said. “There was nothing specific on the table.”
Cable & Wireless also said in a statement today earnings before interest, taxes, depreciation and amortization rose 32 percent to 431 million pounds from 326 million pounds a year earlier. Sales were little changed at 2.27 billion pounds.
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