Takeover talks between Cable & Wireless and Energis are entering a new chapter, after C&W threatened to pull out of the deal if debt holders refused to fall into line. Confidence is now growing that a bid will succeed, Reuters reported. US banks Morgan Stanley and Merrill Lynch have refused to support Cable & Wireless Group's (C&W) bid for rival Energis in expectation of squeezing a better price out of the company. "A number of the hedge funds which had originally opposed the takeover have pledged their support. They realise that if C&W walks away the value of their stakes is going to collapse," a banker told the Sunday Telegraph.
