Commenting on Telephone Rentals Plc’s profit forecast published Thursday (CI No 1,061) Gordon Owen, managing director of Cable & Wireless Plc claimed that over half the growth in forecast earnings per share is attributable to a fall in its tax charge; he said Cables’ offer of 305 pence a share cash represents a multiple of 21.7 times Telephone’s 1987 earnings and 17.5 times forecast earnings, and believes the key qwuestion for Telephone shareholders is whether the firm is capable of generating increases in earnings per share having failed to do so in the past.
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