British telecoms group Cable & Wireless clinched the takeover of Energis today after surviving an eleventh hour attempt by rival bidder Thus to scupper the telecoms tie-up.
The deal, which is worth an initial £594m, will add corporate customers such as the BBC, RAC and Royal & Sun Alliance, and strengthen C&W's position in the highly competitive telecoms market.
But C&W warned the combination of the two businesses would result in the loss of 700 jobs by March 2008, as it looks for £80m of annual savings.
The proposed deal, which was revealed last month, was almost derailed after some holders of Energis debt threatened to block the deal if the price were not increased. C&W gave the funds until 5pm last night to back the takeover.
Earlier in the day Glasgow-based Thus shocked the industry when it tabled a counter proposal worth £800m. It is a quarter the size of Energis but had raised £600m in cash with the rest set to be paid in its shares.
