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Summer sale For Bulldog?

paul45

ULTIMATE Member
According to the City pages in today’s press, C&W are considering a summer sale of its loss making ISP arm Bulldog because of concerns over its performance.

“Bulldog could be very good, but has not exactly met expectations and is burning cash at one hell of a rate” said an insider.

Bulldog is expected to eat through £100m of cash this year alone, however this could rise to £200m should it try to compete better with the likes of BT & AOL.

More detail is in the paper edition of the Daily Mail.
 

Glovepup

ULTIMATE Member
Yes there was an article in the business section of the evening standard that explained that C&W were struggling. It has also been suggested that the US and European arms of the company may be seperated to become independent.

I think C&W in the US is strong, so they would rather risk half of the company and not the whole thing.

According to the article they have already spent about £200m on LLU for bulldog, so I would not be surprised if they got rid as they still need to spend more!
 

Glovepup

ULTIMATE Member
The article i read was about 2-3 weeks ago, I have seen other sipnets around the place saying the same thing
 

TRIaXOR™

ULTIMATE Member
thats what I said in an earlier posting that pluthero wasn't selling up Bulldog but for some reason Paul45 kept arguing the point,

hence why I asked "What paper was this, I'd like to see it myself" to the Statement by paul45 "According to the City pages in today’s press"

Pluthero stated already it wasnt for sale so why does he keep implying that it is?
 

paul45

ULTIMATE Member
TRIaXOR
hence why I asked "What paper was this, I'd like to see it myself" to the Statement by paul45 "According to the City pages in today’s press"
I’ve already said the paper edition of the Daily Mail.


Pluthero stated already it wasn’t for sale so why does he [ed: assume me - paul45] keep implying that it is?
I’ve not implied it is for sale, instead I merely questioned the possibility and put forward some rational remarks.
I would like to see an actual quotation by Mr Pluthero which explicitly confirms Bulldog is not being considered for sale – personally I’ve yet to see such a quote by him.

In fact, all I’ve seen is a blatant and obviously intentional upbeat statement on a part of a company which is embarking upon plans for downsizing.
When you see such statements, you’ll frequently find it’s the prelude to the ‘For sale Sign’ being erected – hence the previous question of the price being talked up by the upbeat statement.
it seems that some have taken the C&W press release puely on face value and assumed differently.

But as I say, show me an actual C&W/Pluthero statement that confirms that Bulldog is not being considered for sale, and I’ll believe it – for the time being ;)
 

Mark.J

Administrator
Staff member
ISPreview Team
I'm inclined to agree with paul here. Pluthero only responded to concerns that Bulldog could be changed into a wholesale provider and not that it wouldn't be considered for sale.

Judging by the change to positive language I would surmise that a sale may now be more likely and not less. The best possible reality is that C&W is simply going to wait and see how the LLU market develops over the next quarter before making a final decision.
 

Glovepup

ULTIMATE Member
I dont think the future of Bulldog is certain, as Mark suggests they will probably wait to see how the LLU market does and then make their final decision.
 

TRIaXOR™

ULTIMATE Member
well all we can do is see what happens..

To sell it would (In my view) be foolish.
 

paul45

ULTIMATE Member
Although I agree that C&W will give Bulldog a little longer with LLU before deciding to put up an advertising hoarding, I do wonder if they might respond favourably to an outside offer before then.

Mr Pluthero’s remark of “Bulldog building shareholder value” might well have caught the attention of one or two possible suitors.

Could this “shareholder value” have meant value in terms of dividends, a rampant share price, or a hint at selling the business for an acceptable offer and returning the cash value to the shareholders? (plus of course allowing the various directors be given the mandatory and customary golden handshakes of a few million quid each)
 

paul45

ULTIMATE Member
Adding a bit to ThatzVinyl's comments, the present C&W (being harshly renamed Clueless & Witless) might not even exist long enough to make a decision on the future of Bulldog.

Having previously been unsuccessful in attracting an acceptable bid for itself, the financial journals are now suggesting that a private equity company and Thus are considering their options in making a bid for C&W once the share price is at £1.

Coincidently, within the last few days Mr Pluthero has purchased 1 million shares in the company, which under the terms of his contract has been matched with a reward of a further 1 million shares – or for want of a better description, a sort of BOGOF for the rich. :hrmph:
 
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