Based on confirmation that Liberty Global and Cable & Wireless are in takeover talks, here are some early thoughts should the sale be confirmed.<\/span><\/i><\/p>\n
\nWith the dust not yet settled on the sale of Columbus international to Cable & Wireless Communications plc (CWC), earlier this year, many of us across the region were taken aback by the CWC announcement last week that it had been approached for takeover by global telecoms and television firm, Liberty Global Inc (Source: <\/span>CWC<\/span><\/a>). Apart from confirming that they are in discussions, the parties themselves have been tight-lipped about their engagement, but cited that by 19 November 2015, another statement would be made as to whether Liberty Global has \u201c<\/span>a firm intention to make an offer for CWC<\/span><\/i>\u201d (Source: \u00a0<\/span>Liberty Global<\/span><\/a>). <\/span><\/p>\n
Headquartered in London, Liberty Global Inc. is major player in the international telecoms\/ICT space, which focuses on television and broadband Internet services. It operates in 14 countries, 12 in Europe, along with Puerto Rico and Australia, and serving over 27 million customers. As at June 2015, the firm has over 38,000 employees and generated revenues of USD 18.2 billion (Source: <\/span>Liberty Global<\/span><\/a>).<\/span><\/p>\n
On the other hand, although CWC has a presence in fourteen countries in the Caribbean, along with Panama, Monaco and Seychelles, it is a considerably smaller firm than Liberty Global. It serves 5.2 million customers, generated revenues of USD 1.9 billion, with around 3,970 employees (Source: \u00a0CWC<\/a>).<\/span><\/p>\n
As persons based in the Caribbean would be painfully aware, the teething pains associated with the ongoing consolidation of Columbus and CWC operations in the region have been extensive. Complaints have been rampant regarding service quality, as well as the recently announce price hike that is likely to take effect in several countries. In the midst of all of this, there is now talk of a possible takeover.<\/span><\/p>\n
Although it must be emphasised that neither CWC nor Liberty Global has announced that a takeover is imminent, the fact that both parties (to date) are still in discussions on that matter means that it is still possible. It is thus in that light that the following initial reservations are being expressed:<\/span><\/p>\n
Further, an based on past experience, when AT&T Wireless Service in the United States sold their operations to Cingular in the early 2000s, operations in a\u00a0number of Caribbean countries also changed hands. However, in less than two years, and having no strategy for the region, Cingular sold its Caribbean operations to Digicel.<\/span><\/p>\n
Although Liberty Global and CWC are currently in takeover talks, which could fall through, it ought to be noted that earlier this year and in an interview with the <\/span>UK Telegraph<\/span><\/a>, CWC Chief Executive Officer, Phil Bentley, expressed the view that CWC could be a takeover target: <\/span><\/p>\n
Image credit: \u00a0Gerard Stolk<\/a> (flickr)<\/em><\/p>\n
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