On a day that the US stock market was closed, the London stock exchange managed to come up with speculation that next mega-merger is to be between UK-based international telco Cable & Wireless Plc, and database giant Oracle Corp combining in a $30bn deal. Widespread speculation was sparked by reports in the UK’s Mail on Sunday. But the news of the merger comes just two weeks after a rumor of similar merger between largest British telco and world’s largest software company, British Telecommunications Plc and Microsoft Corp, rather than the respective number two players C&W and Oracle. The companies refused to clear up the confusion with both Oracle and Cable & Wireless spokespeople refusing to comment on the deal. The Mail report quoted Philip Crawford, Oracle’s senior vice-president and head of UK Operations, saying there had been talks between the two chief executives and that dialogue was continuing. An Oracle spokesman rebutted saying Crawford was quoted out of context. With company chief executives regularly meeting worldwide to do business, rather than take each other over, Oracle chief Larry Ellison and C&W chief Dick Brown maybe did meet. Perhaps, the database firm wheeled out its number one salesperson out to close a deal with C&W. But the most likely cause of the rumor, is that the two met for Larry Ellison to push his vision of the future, the Network Computer. The cable TV and domestic telephony arm of C&W, Cable & Wireless Communications Plc, still hasn’t come up with definite plans for what is going to do with UK cable Digital TV services, apart from committing to a launch of service as the same time as the satellite Digital TV launch from BSkyB. Oracle, through its Network Computing Inc subsidiary is trying to build a market for Network Computers, with one plausible use for the NC’s as interactive set-top boxes for home users of digital TV over cable. The rumors seem to have been received well by the city with shares in C&W up 1.4% at ú6.32. But the market will be left holding its breath until the two companies decide to either categorically deny the reports, or reveal what they were discussing. In an echo of the rumored deal between British Telecom and Microsoft, Bell Atlantic Corp is said to be a second party in C&W merger talks.
