Cable & Wireless Worldwide moves to calm shareholders

Embattled Cable & Wireless Worldwide (C&WW) is to appease investors by bringing forward plans to explain how it intends to return the business to an even keel.

The telecoms business infuriated shareholders in November when it installed Gavin Darby as its second new chief executive within six months – but insisted he would not set out his plans until May this year.

The vow of silence followed a torrid 12 months in which C&WW issued a string of profit warnings, swung from a profit to a £433m half-year loss, and rattled investor confidence by repeatedly changing its senior management.

The company’s share price has lost more than three-quarters of its value over the past 12 months.

Furious shareholders have complained C&WW has become a “walking disaster compounded by arrogance”, and expressed disbelief at its refusal to talk.

However, in an apparent attempt to draw a line under the saga and throw off the air of arrogance, Mr Darby has decided to outline his plans to investors in February instead.

He will now use the company’s third quarter results on February 16 to set out his strategy to improve operations – what one source described as his “dash to dullness”.

It is understood that a number of leading investors have urged Mr Darby to offload its international arm and turn it into a pure UK business.

Source: The Telegraph, 14th January 2012

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