Liberty Global, the telecoms group controlled by John Malone, the American tycoon, is in talks to acquire Cable & Wireless Communications in a deal worth nearly £4 billion, which would help to bolster the group’s presence in South America and the Caribbean.
Shares in CWC, which dates from the 1870s, when the company helped to lay the first transatlantic cables from the Lizard peninsula in Cornwall, rose by more than 20 per cent on news of the approach.
CWC confirmed last night that it was “in discussions with Liberty Global regarding a possible shares and cash offer”.
CWC, in which the billionaire Mr Malone already holds a 13 per cent stake, cautioned that there was “no certainty that any firm offer will be made, nor