Cable & Wireless PLC - Re Proposed Acquisition

RNS No 7621t
CABLE AND WIRELESS PLC
1st July 1997

CABLE & WIRELESS TO INCREASE OPTUS HOLDING TO 49 PER CENT

Cable & Wireless announced today (1 July 1997) agreement
in principle with BellSouth Corporation for Cable &
Wireless to purchase its shareholding of  24.5% in Optus
Communications of Australia.  The acquisition would take
Cable & Wireless' shareholding in Optus to 49%.

Under the proposed transaction, Cable & Wireless would
make a cash payment to BellSouth of A$980 million (#445
million) for BellSouth's 490 million shares and would
subsequently transfer to BellSouth, subject to the
agreement of OCCEL shareholders, an interest in Cable &
Wireless' 22.3% shareholding in OCCEL, the mobile
operator in Western Colombia.

Simultaneously, Optus would issue 298.9 million options,
each entitling Cable & Wireless to purchase one newly
issued Optus share at a price of A$1.75.  Based on
current projections the average purchase price to Cable &
Wireless is estimated  to be A$1.89 per Optus share.
After exercise of the options, Cable & Wireless'
shareholding in Optus would exceed 50%.

Richard H Brown, Chief Executive of Cable & Wireless said
"This is a unique opportunity for us to manage Optus and
add shareholder value.  As a high growth, fully
integrated telecommunications, information and
entertainment company Optus fits well with our view of
the future.  Optus is already a successful business,
growing market share in a highly competitive Australian
market.  More hard work lies ahead but, now that we can
manage the company, we can apply our unrivalled
experience in broadband communications around the world.
I am confident Optus will continue as an Australian
success story.

"We have decided to dig our roots deeper in Australia
where we can offer our customers a full range of
integrated services, and to plan an exit from a dilutive
wireless business in Colombia, where we cannot.  This is
a further example of our determination to increase
shareholder value both immediately and in the future."

The turnover of Optus Communications from the most recent
published audited accounts for the year ended 30 June
1996 was A$1,944 million (#883.6 million), with  profit
before tax of A$60.3 million (#27.4 million) and net
assets at that date were A$1,894.6 million (#861.2
million).

This transaction is subject to a number of conditions
including the approval of Australia's Foreign Investment
Review Board.
Ends

Notes to Editors
Optus Communications began operations in January 1992 as
Australia's second telecommunications operator.  It
achieved its maiden full-year profit of A$60 million in
1995/6 and announced a first half profit of A$59 million
for the six months to 31 December 1996.  It has a fully
digital fixed network, based on ultra-modern SDH
technology.  Its services include long distance and
mobile services; local calls for business; data, fax and
satellite services.  Optus has secured an 18% share of
the Australian long distance (national and International)
market, with 1.9 million customers and 32% of the mobile
market with 1.5 million customers.  In March 1997, Optus
took over 100% ownership of Optus Vision, which currently
provides broadband pay TV services to more than 180,000
customers and passes more than 2 million homes in Sydney,
Brisbane and Melbourne.  This will allow Optus access to
customers through the broadband local loop network.

Cable & Wireless acquired its initial 24.5% shareholding
(490 million shares) in Optus at A$1.00 per share.

Cable & Wireless is one of  the world's leading
providers of international telecommunications services.
Its businesses provide 15 million customers in 70
countries with a complete range of  international,
domestic and mobile communications.  Cable & Wireless is
the world's fourth largest carrier of international
traffic, provides mobile communications in 30 countries
and operates the world's largest, most advanced cableship
fleet.


Contacts at Cable & Wireless:
Investor Relations:
John Doherty, Tel:  [phone]

Media Relations:
Peter Eustace, Tel:  [phone]
Jennifer Weller, Tel:  [phone]

END