Scottish telecoms firm Thus was at the centre of a takeover approach today after Cable & Wireless confirmed it was making an offer.

Scottish telecoms firm Thus was at the centre of a takeover approach today after Cable & Wireless confirmed it was making an offer.

Shares in the Glasgow-based broadband provider leapt 19% - giving the company a market value of around £240 million - after news of C&W's interest.

C&W said it "notes the recent movement in share price of Thus and confirms that it has made a preliminary approach to the board of Thus in relation to a possible offer".

But the group said there could be no certainty that a formal offer would be made.

Thus - formerly part of Scottish Power until its stock market flotation in 1999 - owns Demon broadband and also counts large businesses and public sector bodies as clients.

It employs more than 1,700 people and last week posted its first operating profits for the year to the end of March, with a £4 million surplus, compared to an £11.1 million loss previously.

Thus responded to C&W's statement by saying it was "confident in its future as an independent group" and urged shareholders to take no action at this time.

It added: "The board remains focused on delivering maximum value for shareholders and will evaluate any proposal from any third party against the value that the company can deliver as an independent group.

"There can be no assurance that any offer for the company will be forthcoming."

C&W last week reportedly said that it was eyeing UK acquisitions, as well as a move to possibly split its UK and international operations. It is thought that a merger with another operator could make it easier to spin off the UK business.

The telecoms industry is consolidating apace, with UK telecoms carrier Vanco Group snapped up by India's Reliance Communications earlier this week.

Thus is specifically focused on the UK, whereas C&W provides telecoms services across the world.

Thus was founded in November 1994 under the name Scottish Power Telecommunications Holdings. It demerged from Scottish Power in March 2002.

C&W shares fell 2% after the group's announcement. The stock had been higher after an upgrade by Goldman Sachs.

It pleased the market last week with better-than-expected annual results.

C&W produced underlying earnings of £605 million for the year to March 31, a gain of 23% on a year ago.