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OFT Threatens C&W/Energis Deal

Posted: 18th Oct, 2005 By: MarkJ
The Office of Fair Trading (OFT) is reported to be threatening a closer look at C&W's £720m take-over of Energis, potentially stalling the merger:

John Caudwell - the boss of Caudwell Communications who is flogging his telecoms business - wants the OFT to intervene because he believes the merger would be "anti-competitive", reports The Sunday Telegraph.

Caudwell reckons that the tie-up would reduce the number of telcos he can approach for telecoms service, which in turn would make it harder for him to negotiate deals with suppliers.


The Register notes how Analysts, not to mention anybody familiar with the ISP industry, have stated that the Telecoms sector is already highly competitive and unlikely to be impacted by the deal.
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