From: nigel.allen@canrem.com (Nigel Allen)
Newsgroups: comp.dcom.telecom
Subject: Cable & Wireless Announces Major Alliance with BCE
Date: 17 Nov 92 00:00:00 GMT
Organization: NDA
X-Submissions-To: telecom@eecs.nwu.edu
X-Administrivia-To: telecom-request@eecs.nwu.edu
X-Telecom-Digest: Volume 12, Issue 853, Message 1 of 13

Here is a press release from Cable & Wireless.  An employee of the
U.S. subsidiary of Cable & Wireless posted it in the MDF echo on
Fidonet.

      CABLE & WIRELESS ANNOUNCES MAJOR ALLIANCE WITH BCE

London, 11 November 1992 -- Cable & Wireless today announced the
formation of a major alliance with BCE whose principal subsidiaries
provide a full range of telecommunications services and systems to
almost three quarters of the Canadian population.

The new alliance is to be supported by BCE acquiring a 20 percent
shareholding in Mercury for 480 million pounds and Cable & Wireless
investing 30 million pounds into BCE's UK cable TV interests.

Announcing the alliance, Lord Young, Executive Chairman of Cable &
Wireless, said: "This advances the strategy of both Cable & Wireless
and Mercury.  Our partnership with one of the leading
telecommunications companies will give us access to understanding
research and development facilities.  We look forward to working with
BCE across the world, especially in Europe.

"Our investment in BCE's cable TV interests will greatly enhance our
ability to access residential customers and small and medium sized
businesses reinforcing Mercury's role as the second force in UK
telecommunications."

BCE, Canada's largest company, recorded turnover of 10.4 billion
pounds and profit before tax of 1.3 billion pounds in the year ended
31st December 1991.  Its core business is in the provision of
telecommunications services and the manufacture of telecommunications
equipment.  The corporation's principal subsidiaries include: Bell
Canada, Canada's largest supplier of telecommunications services;
Northern Telecom, one of the world's leading suppliers of fully
digital communications systems; and Bell-Northern Research, Canada's
largest research and development organization and a world leader in
the design of advanced telecommunications systems.

BCE's President and Chief Executive Officer, Mr. L.R. Wilson,
commented: "This alliance represents a major step in BCE's strategy of
expanding our global interests in our core telecommunications
business.  Cable & Wireless is one of the largest and most broadly
based international telecommunications companies and is a strong
partner.  BCE's investment in Mercury will significantly enlarge our
earnings base and open opportunities for further international
investment in partnership with Cable & Wireless."

The net cash to be generated from these transactions will be applied
in reducing Cable & Wireless' gearing.  Mercury will be substantially
debt free after the transactions.

Cable & Wireless will maintain management control of Mercury.
However, BCE will have management involvement including the right to
appoint two directors to the Board of Mercury and have a senior
executive appointed to the company's Chief Executive's Committee.

The Cable & Wireless investment in BCE's UK cable interests of 30
million pounds of long term capital will be a combination of equity
and convertible securities.  Cable & Wireless will have an initial
shareholding of 12 percent, rising to 20 percent on full conversion.

BCE has two major investments in the UK cable industry: an 80.4
percent interest in East London Telecommunications Limited and a 30.7
percent interest in Videotron Holdings Limited.  Together the two
companies hold 14 franchises in Central London covering approximately
60 percent or 1.6 million of London's homes, as well as franchises in
Winchester and Southampton covering 200,000 homes.  The franchise
areas also give access to an estimated 120,000 small to medium sized
businesses.

Agreements covering the acquisition of the interests in Mercury and
BCE's UK cable interests are expected to be signed shortly.
Completion, which will be subject to the fulfillment of certain
conditions including regulatory approvals, is expected in January
1993.

Cable & Wireless has been advised by Lazard Brothers & Co., Limited
and Lazard Freres & Co., Limited.


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