18/04/2005

Scotsman.com Business - Technology - American private equity company eyes Thus as target for merger

Scotsman.com Business - Technology - American private equity company eyes Thus as target for merger

"Columbia Ventures already owns 7.1% of the Glasgow company but chief executive Ken Peterson has revealed that he wants to combine Thus’s UK telecoms network with his undersea transatlantic cable to supply telecoms services on both sides of the Atlantic."

Well it makes sense. THUS has a share value of under £200m (at the closing price of 14.25p on Friday - so even less today as the share price dropped to under 14p). With network assets of more that £0.5bn and a turnover of £360m it looks a good buy.

Of course it's only a good buy for someone with cash, they'd have to make an offer to buy out the existing shareholders (mainly institutions) and they'd need a UK network.

THUS has little money for new investment (and new products) so they need external cash. They could go to the banks for a loan, but then they'd be at the mercy of the banks who are vary wary of investing in telecoms companies.

A foreign operator needing a UK network (or a UK operator wanting the Demon brand) would make a good partner, there are some clever people at THUS and the network being one of the most modern in the UK can support the tranch of IP centric services that convergence is demanding.
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