C&W sells Japanese stakes for pounds 254m

THE REORGANISATION of Cable & Wireless took another step forwardyesterday when the group sold small minority stakes in nine Japaneseregional mobile phone companies to Vodafone AirTouch for pounds 254m.

The disposals, on which C&W will record a pre-tax profit of pounds240m, were expected as part of the telecoms company's strategy tosell businesses in which it lacks controlling interests. Vodafoneraised its stakes in each of the groups to between 21 and 29 percent.

"It seems a good deal and not very expensive either," said JimMcCafferty, telecoms analyst at SG Securities.

The sales follow the recent disposal by C&W of One2One and itsresidential cable interests as it moves to focus on business telecomsand Internet services in the US, Britain and Asia.

Vodafone picked up three further mobile stakes for about pounds84m: they were owned by Japan Telecom, the country's number threecarrier, of which BT and AT&T hold 30 per cent.

Vodafone ended up 10.25p at 293.25; C&W added 299p to 714p.