Under-fire Cable & Wireless says it has investor support

Cable & Wireless has insisted it has the backing of many of its leading shareholders despite news that the Association for British Insurers (ABI) is considering a red top alert ahead of the telecom company's annual general meeting.

The ABI, which represents close to a fifth of UK shareholders, is believed to be considering issuing a red-top, its most serious warning, on C&W's plans to extend one long-term incentive plan (Ltip) and establish a follow-on scheme to retain top executives.

C&W has, however, said that it has been assured by some of its leading investors that they support the company's proposals. A C&W spokesman said: "We have undertaken extensive consultation with a large cross section of our leading shareholders and to date have received a broad level of support for our proposals."

The ABI said it is still making a decision and would not comment ahead of any proposal. One industry source said that major shareholders including Newton, with 13pc, had shown their support for the telecoms company. Newton on Sunday refused to comment on the issue.

According to reports over the weekend, some shareholders have been concerned that the terms of the new scheme to be put in place this year could pay directors up to four times salaries based on a 30pc rise next year.

The Telegraph, 14th June 2009

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