Cable & Wireless hooks in PSINet flotsam

NEWS Cable & Wireless is considering buying parts of PSINet as the bankrupt ISP's assets hit the market at bargain prices. Cable & Wireless is looking at PSINet's assets in Japan and Panama, but CEO Graham Wallace stressed that he would only strike a deal if the price was low enough. Warning on further turmoil in the telecoms market, he said Cable & Wireless would remain prudent for the next year with its £6.5bn cash reserve. However, he gave a thumbs up to the web-hosting market, forecasting sharp growth between now and 2005. Interest in PSINet, which went bankrupt in June, follows Cable & Wireless's recent acquisition of web hosting firm Digital Island. The company has pledged one billion investment, including the acquisition price, in Digital Island in a bid to take it to profit within three years.