Sprint says takeover by britain's c & w not possible

Sprint Corp. said Wednesday that a takeover of the company by Britain’s Cable & Wireless “could not be possible” because of agreements with European telephone companies that own pieces

of Sprint. The Wall Street Journal reported Wednesday that Cable & Wireless was considering a takeover bid worth at least $15 billion for Sprint, the No. 3 U.S. long-distance company.

The report also said C&W;, Britain’s second-largest telephone company, has negotiated with France Telecom, which owns 10% of Sprint, to line up support for a bid. Industry analysts have

said for some time that Sprint’s Global One international telecommunications alliance with France Telecom and Deutsche Telekom would be a perfect fit for Cable & Wireless. On Wednesday,

Sprint Chairman William Esrey, noting the company normally does not comment on rumors, said, “But in this case, a reported deal with Cable & Wireless supported by France Telecom could

not be possible because of the terms of a standstill agreement Sprint has with France Telecom and Deutsche Telekom.” Like France Telecom, the German telecommunications giant owns 10% of

Kansas City, Mo.-based Sprint. Both European companies are prohibited by the so-called standstill agreements from raising their stakes for now. France Telecom also denied that it was in

talks with C&W; about supporting a possible bid for Sprint. Despite the denials, the report sent Sprint’s stock soaring up $2 to close at $45.125 on the New York Stock Exchange. U.S.

shares of C&W; rose 25 cents to close at $24.25, also on the NYSE. MORE TO READ