Cable tycoon John Malone’s Liberty Global PLC is in talks to acquire Cable & Wireless Communications PLC, according to people familiar with the matter, in a deal that could be worth more than $5 billion and widen the acquisitive company’s presence in the Caribbean and elsewhere.
A takeover deal between the companies could be reached before they report their respective results in early November, one of the people said. As ever with mergers and acquisitions, it is possible the talks will fall apart before an agreement is reached.
Cable & Wireless released a statement confirming the companies are in talks about a possible cash and stock deal after The Wall Street Journal reported the news.
Cable & Wireless had a market value of about $4 billion on Thursday in London, where it trades. With Cable & Wireless debt, a deal could be valued at roughly $8 billion.
Malone is Liberty Global’s chairman and largest voting shareholder, with a 25 percent stake as of April.
Cable & Wireless, which has more than 6 million subscribers, offers pay television, Internet, landline phone and wireless service in the Caribbean, Panama, Monaco and the Seychelles, according to its website.
