C&W: needs retuning
Cable & Wireless bonds are now trading on a cash basis but investors are still not certain they yet represent good value. How low do the bonds need to fall to make them a good investment or how much change is needed at the firm itself?
Lehman Brothers
Underweight
We have long viewed C&W as a deteriorating credit owing to the poor operating profile; recent disclosure has confirmed our analysis. In fact the credit could further deteriorate because the business model remains questionable. Hence the company is vulnerable to a fall to high yield and will need to show superior execution for us to change our negative view, which may require a change in management.
C&W Global’s restructuring plan, announced on
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