THE INK HAS NOT DRIED on Cable & Wireless’ planned takeover of Flow and already the cries of concern are growing over the multibillion-dollar deal.
Cable & Wireless Communications yesterday announced it would buy its competitor Columbus International, trading as Flow, for US$1.85 billion (BDS $3.7 billion) while also covering Flow’s US$1.7 billion (BDS$3.4 billion) in debt.
In a swift reaction, Digicel, which has been battling C&W, operating as LIME, for control of the Caribbean mobile market, has told regulators to keep a close eye on the deal, while noted economist Professor Avinash Persaud has called on the Barbados Government to block the takeover.
“The Barbados Government and others around the region should block the deal until it has secured guarantees open to public scrutiny and monitoring,” Persaud said.
“The deal will be a major blow to attempts to improve quality and access to telecommunication connectivity, a critical factor in the region’s economic future.”
Digicel, on the other hand, has made it clear that before the buy-out is approved by regulators like the Fair Trading Commission (FTC), it wants a chance to put its position on the matter.
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