The talks between Cable & Wireless Plc and AT&T Co that could have led to the US phone giant paying some $1,000m and future funding contributions for a 25% to 30% stake in Mercury Communications Ltd have been broken off at least until after the British General Election, the Financial Times reports: as well as political worries on AT&T’s side, Cable & Wireless’ weakness on the continent is seen as a stumbling block to a deal, especially in today’s thoroughly opportunistic telecommunications market – it should be remembered that while US Sprint Communications Co holds the American end of Cables’ PTAT-1 transatlantic fibre optic cable, and might have been seen as its most logical partner in the US, in the UK, Sprint has applied for a licence to establish a network that will compete with that of Mercury.
