News / Business
Cable and Wireless chief leaves amid restructuring
On 2 February 2006, Cable and Wireless said Francesco Caio would leave at the end of March as part of a restructuring into UK and international divisions. The announcement followed a warning that expected profit would be lower than earlier forecasts.
Competitive pressure and speculation
The source linked the warning partly to difficult competition in the UK market and recorded a sharp initial fall in the company’s shares. It also noted market speculation about a takeover, but that was speculation rather than an announced transaction.
Network transition in view
Cable and Wireless had acquired Energis and operated fixed, mobile and business services. The report contrasted investment in IP networks with the established circuit-switched model and discussed local-loop unbundling. Those were the strategic conditions described in 2006, not a present assessment of the company. The source did not establish whether the contemplated corporate changes would lead to a sale.