Struggling C&W brings in new management duo

Struggling Cable & Wireless named a veteran of the telecoms industry, Mr Francesco Caio, as its new chief executive today…

Struggling Cable & Wireless named a veteran of the telecoms industry, Mr Francesco Caio, as its new chief executive today as it tries to restore confidence in the 131-year old firm.

The stock leapt seven per cent to 76p in London on news that C&W's management shake-up is complete after a turbulent three years that have seen C&W's markets collapse, its value plunge over 90 per cent and the loss of thousands of jobs.

Mr Caio, the founder of business telecoms and Internet service provider Netscalibur and first CEO of Italian mobile firm Omnitel Pronto, will work alongside recently appointed chairman Mr Richard Lapthorne, a highly respected former aerospace boss.

C&W also named Mr Kevin Loosemore, formerly of Motorola, to the new post of chief operating officer.

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The task for the new team will be to restore the fortunes of the firm that once provided communications services to the British Empire. Mr Lapthorne promised clarity by June.

Analysts said Cable & Wireless needed to re-examine its presence in the United States. Last year C&W scaled back its cash-draining, core Global unit, which provides corporate Web site hosting and telecoms services, and cut 3,500 jobs.