Mobile telecoms giant Vodafone has confirmed it is running the rule over rival telecoms firm Cable and Wireless Worldwide (CWW).
CWW's shares have lost almost three-quarters of their value over the last year after a series of profit warnings.
Vodafone said it is still in the very early stages of assessing whether to make a bid and indicated that if it were to do so, the offer would likely be in the form of cash for shares.
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The story of Cable and Wireless Worldwide does not, it is fair to say, reflect well on the management since it was spun off from the old Cable and Wireless Group in March 2010.
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In November last year John Pluthero left as Chief Executive claiming he couldn't commit to the three years it would take to turn around the business.
In his period in charge, as both Chairman and Chief Executive, the stock lost 70% of its value and issued three profit warnings.
That didn't stop him pocketing £780,000 as a salary for 2010. Some observers muttered that he was more private equity baron than a listed company corporate leader.
The assets of Cable and Wireless Worldwide, however, could be interesting to Vodafone.
CWW has a large fibre optic network in the UK which provides clients with services like video conferencing and cloud computing. That bandwidth might come in handy to the world's biggest mobile telecoms company by revenue.
A transaction might also provide some relief for CWW shareholders who have had a rather depressing time of late.
Shares in the company leapt 28% at the open in London on news of the possible deal.
BS
