Cable & Wireless filed for bankruptcy for its US operations and decided to sell the business to Gores Technology Group for $125 million, thereby bringing to a close a very painful and super expensive chapter in its life. Caught in the broadband bubble, the old colonial phone giant had tried to remake itself into a fiber giant, bought bankrupt hosting operations such as those of Exodus and introduced a slew of IP services that never gained traction. In US alone it spend around $3.5 billion on acquisitions.
bq. Chief Executive Officer Francesco Caio said in June the U.S. division would never make a profit. Analysts had forecast a U.S. withdrawal, which unravels the strategy of former CEO Graham Wallace, may cost the London-based company as much as 1.1 billion pounds.