CABLE & Wireless managing director in Ireland, Mr Nick Koumarianos, has said the company will look more seriously at options to expand its cable interests in Ireland following the merger of the group with three US groups. The company, which employs 200 people in the Republic, is expected to emerge as one of the front runners to purchase the Telecom Eireann subsidiary Cablelink if its is put on the market. Mr Koumarianos said yesterday it would be "more interested in cable options in the future" in the Irish market as a result of the latest merger.

His comments follow the announcement that the Cable & Wireless group is set to merge its UK subsidiary, Mercury, with NYNEC CableComms, Bell Cablemedia and Videotron Holdings. The merger will create a new company called Cable & Wireless Communications, which will be listed separately in London and New York. Cable & Wireless will have a 52.6 per cent stake in the group.

Announcing the merger yesterday, Cable & Wireless chief executive, Mr Richard Brown added that he could not rule out further international alliances. Cable & Wireless has more than 4,000 customers, mainly large companies which use its international telephone services.

The merger comes just five months after Mr Brown took up the role of chief executive. He was previously in charge of accounting services group H.&.R. Block and prior to that was vice-chairman of US telecoms group Ameritech Corp.