Cable & Wireless arranges US exit

British Telecommunications group Cable & Wireless(C&W) have finally orchestrated an exit plan from its loss-making US businesses by selling Cable & Wireless America to Gores Technology Group for $125m (€177.72m) in cash.

The company has spent six months attempting to get out of its US web hosting business at a reasonable price.

Some analysts had estimated the US exit would cost the firm closer to £800m (€1.1bn).

The company said the sale of assets would be conducted under Chapter 11 of the US bankruptcy code and the proceeds will be used to meet the US business's liabilities. C&W estimated the remaining cost of exiting the US would not exceed £300m (€426.6m).

C&W operate under the name Cable & Wireless/Allnet in Ireland and employ approximately 150 people here.