The disposal is part of C&W strategy to focus its activities on multinational enterprises and service providers in continental Europe, and to withdraw from providing domestic only services. To this end, it has already disposed of its domestic businesses in Belgium, Sweden, the Netherlands, Switzerland and Italy.
C&W retains offices in Munich, Dusseldorf, Frankfurt and Hamburg, as well as its data center in Munich, plus certain networks and operations in Germany. All voice, data, and IP services should be unaffected by the disposal.
Meanwhile, it has also been announced that C&W has agreed to a reduced pay-off for former chief executive Graham Wallace. Wallace resigned from the board on April 4, but remained available for a period to support the chairman and the new CEO. His employment termination date will now be July 20.
In return for Wallace agreeing to waive a significant proportion of his contractual entitlements, he will get a payment of 387,500 pounds ($650,573), which is equivalent to six months’ pay, in lieu of his two-year notice period. To allow for the possibility of further mitigation, this amount will be spread over six monthly payments following his employment termination date.
He will also receive additional pension credit, equivalent to 14 months’ pensionable service, the capital value of which is 500,000 pounds ($839,549). He will receive no payment under any of the company’s short-term or long-term incentive plans.
The settlement tackles fears that Mr Wallace could have walked away with as much as 1.5m pounds ($2.5m) after presiding over a sharp fall in the company’s share price as well as sanctioning thousands of job cuts.
Source: Computerwire
