Cable & Wireless Set For Cuban Expansion - Source

Cable & Wireless PLC (CW.LN) is close to agreeing a deal to expand its Caribbean operations to Cuba through an undersea cable link between the island and Jamaica, a source familiar with the matter said Sunday.

The agreement would open Cuba's international telecommunications channels, which have been predominantly satellite-based so far, and allow Cable & Wireless' soon to be demerged International arm to expand in the Caribbean.

The telecommunications company is in the process of demerging its U.K. cable business from its international operations which span mostly former colonial islands in the Caribbean and Asia. The split is due to be completed by March 26.

A spokesman for the company confirmed comments in the Sunday Times by the international business's designated chief executive, Tony Rice, that the newly independent group will look to either increase its stake or sell off its minority-owned associate businesses in Trinidad & Tobago, Afghanistan and the South Pacific.

   -By Kathy Gordon, Dow Jones Newswires; 44-207-842-9293; kathy.gordon@dowjones.com