PUBLISHED: 10:03PM GMT 24 Mar 2011
The telecoms group retreated 9.1 – or 14.4pc – to 54.2p after admitting it foresees “competitive pressure in the market for pure data connectivity” and “price erosion on a number of contract re-signs”.
Cable & Wireless
The company, which provides telecommunication services to companies and UK government departments, said core earnings for the year ending March 2012 would be flat on the current year. Analysts had expected earnings of about £444m this year and £470m next year.
C&W Worldwide, which split from the former Cable & Wireless, was one of a number of IT and telecommunication firms that were heavily affected by UK Government spending cuts last year.
Earlier this month, the FTSE 250 group also parted ways with its highly-regarded finance director, Tim Weller. At the time, The Daily Telegraph revealed he was likely to collect almost £1m in compensation following the termination of his contract. He will be replaced by his deputy Ian Gibson.
Mark James, analyst at Liberum Capital, reiterated his “sell” rating on the company. He added: “Today’s announcement that full-year trading in 2012 will miss expectations significantly, has obviously disappointed many.”
@STORM.
Can you explain your last post? why would the board of directors be responsible for negotiating the sale of a shareholders’ shares? does’nt the shareholder appoint the board in the first place? also why should a shareholder delegate the sale of its own shares to the board. there is certainly no legal obligation I am aware of in company law in bahamas that they should do this. Not sure i understand your argument.
@ Whap
THE FACT THAT YOU DON’T REALIZE THAT “LIME” (THE “DBA” NAME) IS THE SAME ENTITY AS CABLE & WIRELESS, WEST INDIES, BUT SEEK TO MAKE A POINT ABOUT THIS “NONE POINT” MEANS YOU ARE IN OVER YOUR HEAD IN THIS DISCUSSION.
TO DISCUSS “WHAT” SHOULD HAVE BEEN DONE (PROPPER SEQUENCE OF ACTIVITIES THAT APPLY IN THIS KIND OF CONSIDERATION) ONE MUST HAVE A WORKING KNOWLEDGE ABOUT SUCH A PROCESS.
THIS IS NOT ONE OF THE RUN OF THE MILL POLITICAL ARGUMENTS THAT WE SOMETIMES ENGAGE IN (NOT YOU PERSONALLY BUT POSTERS GENERALLY). IN THOSE CASES THERE IS OFTEN NO “RIGHT OR WRONG ONLY OPINIONS” AND THEREFORE WITH NOTHING TO STAND ON EXCEPT THE RIGHT TO AN OPINION ONE CAN POST COMMENTS UNTIL THE COWS RETURN HOME. THIS MATTER REQUIRES ONE TO POSSESS SPOECIALIZED KNOWLEDGE – PERIOD. AS I REFUTE THE PROCESS YOU WILL RESORT TO DECLARING WHAT WAS DONE BY THE FNM (WHICH IS ENTIRELY INCORRECT) BUT THE PROMISED COMMISSION OF ENQUIRY WILL DEMONSTRATE THAT TO YOU BY REQUESTING “ANSWERS” FROM THOSE WHO DID WHAT WAS DONE WITHOUT REGARD FOR WHAT “SHOULD HAVE BEEN DONE.” FROM YOUR PERSPECTIVE, YOU ASSUME THAT I DIDN’T READ “SOMETHING” BUT I CONTEND THAT THE SEQUENCE OF APPROVALS ARE OUT OF PLACE AND THEREFORE THE ENTIRE PROCESS IS SUSPECT. YOU ARE ASSUMING THAT THE PROCESS AS IT UNFOLDED IS ACCURATE. THEREIN LIES OUR IMPASSE, SO FURTHER DISCUSSIONS ONLY PROVES TO BE A WASTE OF MY TIME.
@STORM; I never suggested that C&W was not DBA “LIME.” My argument was to refute your claim that the Government of the Bahamas entered an agreement with “LIME,” which is cannot do! The government had to enter the agreement with CWC Bahamas Holdings Limited, which is the LEGAL ENTITY, not LIME. One cannot enter arrangements with “LIME” which is not a legal entity just a Branding/Trading name. So you sir are finally in agreement with what my argument was from the first instance! Not sure if you even understand that when I brought you facts, you kept changing points! It is so laughable!!! LOL!
@ Whap
Yep! Just as I thought (redefining the argument along the way and bailing out on some stupid grounds when pressed to demonstrate “the capacity” to keep-up with the discussion).
I take it that you have no ability to continue. Thanks for the honesty (regardless of how it was expressed – LOL). When dealing with legal documents the advantage always tilts in favor of those trained to do so. Amen
@ Whap
PERHAPS I SHOULD HAVE GIVEN YOU A “PLAY-BY-PLAY” OUTLINE ON HOW THE SALE SHOULD HAVE BEEN CONDUCTED (ACCORDING TO LAW AND PRACTICES) IN MY EARLIER COMMENT.
JUST TAKE THIS INTO ACCOUNT, THE “BOARD OF DIRECTORS” AT BTC SHOULD HAVE VOTED ON A PROPOSAL TO SELL 51% OF THE COMPANY (HAVING RECEIVED SUCH A REQUEST FROM “LIME” AKA CABLE AND WIRELESS WEST INDIES). THE PRICE WOULD HAVE BEEN NEGOTIATED BY THE BOARD OF DIRECTORS (NOT THE PRIME MINISTER AND HIS CABINET) THIS “THING” HAD THE APPEARANCES OF A “HOSTILE TAKE-OVER” WHERE THE PITCH IS MADE TO SHAREHOLDERS, ETC., …… HOLD ON, HOLD ON, DO YOU UNDERSTAND COMPANY/CORPORATE STRUCTURES, KNOW THE LAWS ASSOCIATED THERE WITH, AND REALIZE THAT BTC IS LIKE A REAL PERSON IN LAW, HAVING RIGHTS, BEING ABLE TO SUE AND BE SUED, HAVING DIRECTORS WHO CAN BE SUED FOR DECISIONS THAT ARE GROSSLY UNFAIR TO ITS (BTC’S) BEST INTERST, ETC., ETC., (THE CABINET VOTED ON THE MEASURE TO EMPOWER THE BOARD ON THE FIRST DAY OF THE SALE DEBATE – THAT IS LIKE BUILDING A HOUSE BY STARTING FROM THE ROOF (TALK ABOUT DEMONSTRATING THAT THESE BOARDS OF DIRECTORS ARE NOTHING MORE THAN RUBBER STAMPS). THEN I REALIZED WHY THE MOU WASN’T DELIVERD MONTHS AGO AS PROMISED. THE FNM WAS “WORKING” ON IT (ADJUSTING IT TO CRITICISM HEARD WITHIN THE BROADER COMMUNITY ON TALK SHOWS, NEWS PAPERS, ETC. – WHAT A GOVERNMENT).
GET BACK TO ME TO DISCLOSE HOW MUCH YOU UNDERSTAND ABOUT WHAT I HAVE RAISED, THEN WE CAN PROCEED FROM THERE (HOPEFULLY). SOMETIMES IT MAKES NO SENSE TO ENGAGE A PERSON BECAUSE THEIR UNDERSTANDING IN A SPECIFIC AREA IS WELL BELOW THE LEVEL THAT WOULD ALLOW THEM TO FOLLOW THE ARGUMENT (WE ALL HAVE AREAS OF STRENGTHS AND WEAKNESSES – THIS IS NOT AN INSULT).
@STORM;
Wow you just simply changed your argument about LIME hey? Thought I was responding to your point about LIME being a corporate entity! It’s brilliant how based on you being incorrect, you just switched-up!
I know you can’t be an attorney stating the things you are stating. As an attorney or an individual well-versed in law, as you claim, you should recognize that as an entity wholly owned by the Government of The Commonwealth of The Bahamas, the Parliament of The Bahamas, including the Minister responsible for BTC have powers over BTC although the Government did appoint the Board of Directors. See the following from the Communications Act:
31. (1) The Minister, after consultation with the Corporation, may give to the Corporation such directions, whether of a general or a specific character, as to the exercise and performance of its powers and duties under this Act as appear to the Minister to be requisite in the public interest and the Corporation shall give effect to any such directions.
Further, the Board of Directors of BTC was not able to purchase and/or dispose of assets without the approval of the Minister and Parliament. The Board of Directors are placed in any government entity to effect the overall policy of the government, which in itself is why Boards are appointed by the Governor General on the recommendation of the Government of the day! BTC’s Board does not have similar powers as a regular company, just as Board of Directors in BEC, Water & Sewerage etc don’t! If you are truly knowledgeable as you are claiming to be, you would know 100% better than the b.s. you wrote!
@Wendell…this aint about FNM or PLP…its about common sense. BTC was ever going to be privatized…and it shouldn’t be a race about who got it privatized first. Hell i rather you take ur time and do it right by reading every paper work, disclaimer to the T than rush and be negligent. It is about finding the right deal for the Bahamian ppl. Yes it is sold…can’t do nuthing about it now but this should be a lesson the the ppl of the Bahamas to be smart and knw what your MP’s are doing.
@ Whap
WRONG AGAIN OF YOUR ASSESSMENT ABOUT THE COMMENTS TO EYEOPENER.
THE “HUGH TAXES” AT BEC IS BUILT INTO THE FUEL COST.
(1) GO FIGURE HOW MUCH PER GALLON THE GOVERNMENT “TAXES” OIL COMPANIES FOR THE FUEL (AT THE PORT OF ENTRY)?
(2) POINT 1 ABOVE MEANS THAT IT DOESN’T MATTER WHETHER OR NOT THE POWER COMPANY IS PUBLICLY OR PRIVATELY OWNED THE HIGH TAX ELEMENT IS “BUILT INTO THE OPERATIONAL COST”.
(3) SO WHAT IS YOUR POINT SUPPOSE TO BE (YOU CAN’T BE HINTING THAT THE COST WILL BE REDUCED THROUGH PRIVATE SECTOR CONTROL OVER BEC). BEC HAS ONE HUNDRED PERCENT (100%) MARKET PENETRATION (EVERYONE WHO WANTS POWER FROM THEM CAN GET IT/OR HAS IT. ANY SAVINGS CAN ONLY COME FROM STAFF REDUCTION AND “TWEEKING” THINGS LIKE INVENTORY (AND THE LIKES). PRIVATE SECTOR OPERATIONS FUNCTION ON A MAXIMUM PROFIT MARGIN AGENDA, SO YOU CAN BET YOUR LIFE THAT OPERATING COST SAVINGS WILL NOT BE TRANSFERRED TO CONSUMERS IN THE FORM OF LOWER RATES.
@ Whap
READING WITHOUT UNDERSTANDING HAS THE SAME NET EFFECT AS NOT READING AT ALL.
THE SALE IS BETWEEN “LIME” AND BTC WITH THE GOVERNMENT DIVESTING ITSELF OF ITS SHARES (THE GOVERNMENT IS A SHAREHOLDER) UP TO 51%.
RHETORIC ISN’T PLAYING WELL FOR THOSE OF YOU WHO NOW FIND NO SENSIBLE REASON TO DECLARE AS THE PURPOSE BEHIND YOUR SUPPORT OF THIS SALE. GO READ IT AGAIN … SLOWER THIS TIME.
PERHAPS I SHOULD HAVE DEFINED WHAT “SUBSIDIARY” MEANS AS APPLIED TO A CORPORATION OR COMPANY, ITS LEGAL LIMITATIONS, ETC. IF NEEDED I WILL DO SI IN THE FUTURE (IT WILL BE A TEACHING MOMENT FOR ONE OF US – GUESS WHO).
@STORM:
I would simply say you that the legal binding documents is not between the government of the Bahamas and LIME. Did you watch the debate and read all of the related legal agreements?????? The resolutions passed in the House of the Assembly was never between the government and LIME! I refuse to continue and argument with ignorance!
@ STORM;
Once again, let me educate you, my friend. This has nothing to do with politics or propaganda, it has everything with facts and the legal structure of this transaction. The share purchase agreement is indeed between the Commonwealth of the Bahamas (purchaser) and CWC Bahamas Holdings Limited (vendor), with Cable and Wireless Communications being Guarantors to the transactions. As far as “LIME” is concerned see the following:
LIME is not a Company it is a trading name.
Within Cable & Wireless West Indies Limited all countries
except T&T form part of the One Caribbean brand LIME
It is part of making the business a seamless and common
experience for customers across the region
As a trading name and not a legal entity, “LIME” cannot legally enter any agreement(s)!!!
Now who is attempting to use propaganda and who is using facts here???? Again, it’s persons such as yourself who try their best to muddy the water. However, I wish to remind you that I am much more intelligent than you might wish to believe sir!
By the way, I am not employed by C&W in anyway just a Bahamian who hates when some Bahamians attempt to misinform others by things that are not fact and are easily able to be confirmed.
@ wendell: You and your leader would love it if everyone would just forget about the debacle of this BTC giveaway and fade away, into the sunset hey? Not so my friend. This thing will follow you, Mr. Ing., our children, our great grandchildren and our Bahama Land around for many years to come, don’t forget it is, a national disgrace, even your master voted NO on this deal. You talk about foresight, how do you think we got off the black list after your insightful leader left office in 2002? Those investments that your party is now beating their chest about sure seems like foresight to me.
WELL BTC GONE AND BEC NEXT I WONDER WERE WILL THE GOVERNMENT GET MONIES TO PAY CIVIL SERVANTS AS THEY WONT BE ABLE TO ACCESS IT FROM LIME NOR NIB AS THEY DO WHEN FUNDS ARE SHORT.
Get use to the words “MORE TAXES”
With all due respect eyeopener, do you sit back and remember when government turns to those entities you quoted it off of our backs! We pay the exorbitant rates at BTC and BEC which by extension is an exorbitant rate of taxes being charged to all of us! Do you realize the government uses those corps to tax us more heavily? Bahamian people have to really think about what you say man! So are you suggesting that we should continue to pay the high level of “taxes” when we use those services? Please!!!
Let’s hope Papa isn’t reading this because his blood pressure already too high, remember he has placed a “must buy” on BTC shares which is owned, we think, by C&W?
LIME soon come praise GOD! we gon get cheap minutes n 3G n 4G n iphone n crackberry!
There you have it folkes; another apologist threshing out the party’s message as they walk into deep black hole…STANDBY!
BP
yep cheaper rates (not really better technologey since BTC have that in place)…but nuthing much will be goin bac in the cookie jar for the economy…because we will be too busy paying cable and wireless for a job well done or not well done….Bahamians need to look at the bigger picture at the end of the day. They own majority of the shares plus getting a manager’s fee!!…i aint even mad at CW anymore because they making their billions while we got stuck with the pot cake…the government negotiated for that
@ Whap
OKAY WHAP, SINCE BEING “TECHNICALLY ACCURATE” IS YOUR INTENT, TELL THE BAHAMIANS WHO YOU ARE PROTECTING FROM MISINFORMATION THAT BTC WAS PURCHASED BY “LIME”, A SUBSIDIARY COMPANY OF C&W, WHICH INCIDENTIALLY IS LESS THAN 11 MONTHS OLD.
AGAIN, CAUGHT IN THE TRAP THAT YOU PLANTED FOR ANOTHER – RIGHT “WHAP”.
SOMEONE IS WATCHING YOU PROPAGANDISTS (FROM BOTH SIDES) LIKE A HAWK.
@STORM
ARE YOU SERIOUS? DO YOU READ OR ARE YOU JUST SIMPLY GUESSING AT WHAT YOU ARE STATING??? DID YOU EVEN PICK-UP AND READ A COPY OF THE SHARE PURCHASE AGREEMENT? DID YOU EVEN SEE THAT THE AGREEMENT IS BETWEEN THE TREASURER OF THE COMMONWEALTH OF THE BAHAMAS AND CWC BAHAMAS HOLDINGS LIMITED AND CABLE AND WIRELESS COMMUNICATIONS PLC AND CABLE AND WIRELESS (WEST INDIES) LIMITED. THERE IS NO LEGAL AGREEMENT BETWEEN THE GOVERNMENT OF THE BAHAMAS AND “LIME” AS LIME IS TRADE AND BRANDING. THE LIME BRANDING WAS IN PLACE FROM 2009, WHEN MR. SHAW WAS MADE CEO! THIS IS NOT PROPAGANDA. IT’S SIMPLE FACTS THAT ARE AVAILABLE FOR ALL TO SEE! LET’S PRETEND WE ARE SMART MAN!
It’s incredible how many Bahamians comment without actually knowing enough to make comments! BP, please stop with attempting to be slick with your stories. The referenced story is clearly about Cable and Wireless Worldwide, not Cable and Wireless Communications. Not sure if you can recall but in 2009 the original C&W spit into two independent companies, listed totally separate on the exchange! The results you have quoted are indeed correct, however, correct for the company, which did not purchase the 51% shares in BTC! It is correct for C&W Worldwide! Remember, some of us are more savvy than you would believe we are! I would suggest you stop trying to confuse Bahamians BP!!!
BP never EVER EVER NEVER EVER said it was the end all and be all of information or knowledge. Perhaps the FNM is, not us.
BP
Bp u got the wrong company – this cable wireless worldwide
Time has a way of REVEALING TRAITORS AND PIMPS and it is my belief that some of the BTC’s union leaders BETRAYED THEIR MEMBERSHIP.Since Parliament has now agreed to sell BTC i now caution Bahamians to get ready for price increases and INFERIOR services from C&W.To the BTC employees get ready to join the UNEMPLOYMENT LINE!!!To the Tribune i hope you expose the NEW AND HIGHER SALARIES the foreigners will be making at BTC.
and those idots in the house of assembly voted for this crap.they should be tared and feathered.for this.
It tell ya how much vision they gat! WE WILL REMEMBER THE 22 who sold our birth back to EUROPE!
WE NEED CHANGE!
To all the naysayers whom disapprove of the BTC sale I feel that it is time to end all of this talk. BTC has been sold so please get use to the idea. When I voted for the FMN government it was because I felt as a Bahamian that they were the best (in my opinion) to run this country. Will I agree with every decision that they (the FNM) would make? The answer is simply no but I would prefer to have the FNM running this country any day than the PLP. If the PLP had any kind of foresight that would have dealt with BTC before the left office (they had the opportunity).
WE SHALL NOT FORGT THE 22 TRAITORS WHO SOLD THE MAJORITY INTEREST OF THE PEOPLE’S ASSET FOR CHEAPER MINUTES! HOW LOW COULD YA GO?
BP
@ BP
How is a Parliamentary Democracy conducted when one party wins all the seats?
Any thoughts?
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