Cable in Sale Talks?

We offer today's update with the usual "C&W Rumor Mill Grain of Salt" caveat. The Telegraph newspaper is reporting today that Cable & Wireless is negotiating the sale of its US operations (free registration required). The UK paper reports that Cable & Wireless "is in talks with several potential trade and private equity buyers about the sale of its loss-making US business and hopes to announce a deal within two months." This is no surprise, as the company said it would seek options on a sale when it announced its intention to exit the US market back on June 4. In the meantime, C&W customers are waiting for an indication of the future of the US business, while competitors are offering migration promotions to attract nervous customers. Thus far, many customers seem inclined to wait until the resolution of C&W's centers becomes clear. "A lot of the big customers have stayed with us," said C&W spokesman Chad Couser. The company has been active in trying to provide its hosting customers with current information, Couser said.

Competitors may want to be careful about what they say about C&W, however. Couser said that several competitors' efforts to poach customers have asserted that C&W is shutting its doors. "Our legal team has contacted a couple of them that have characterized our June 4 news incorrectly, claiming that we're ceasing operations," said Couser.