C&W expected to revive plans for de-merger

The City is expecting Cable &amp; Wireless to announce the resurrection of its de-merger plans when it posts its first-half results this week, giving the company&rsquo;s shares a much-needed boost.<br /><br />The telecoms firm put plans to split up its UK and International businesses on hold in November, at the height of the financial crisis, but analysts believe that market conditions have improved sufficiently enough for C&amp;W to get the ball moving again.<br /><br />But internal conflict over multi-million pound bonus payouts &ndash; which would be triggered by the de-merger under the terms of its controversial long-term incentive plan &ndash; are understood to be complicating the process.<br /><br />Management in the International business are said to be trying to delay the demerger, as the firm&rsquo;s weak share price would mean they miss out on about &pound;30m in payouts. But UK senior managers, who would receive payments at the current share price are keen to press ahead.<br /><br />Analysts expect C&amp;W&rsquo;s results to show signs of damage from regulatory pressures and the tough economy.<br /><br />Any announcement on Thursday is likely to include numerous caveats that could lead to further delays in the split.<br />