Telecoms group Cable & Wireless will receive a £2.4 billion takeover approach from a Hong Kong-based firm later this week, it was reported yesterday.

The interest from Pacific Century Cyberworks (PCCW) is expected to value the beleaguered company at almost £1 billion more than its current market price.

PCCWs move comes a month after chairman Richard Li, son of the Asian billionaire Li Ka-shing, had an earlier approach rebuffed by C&W.

C&W shares fell as low as 41p in December but closed at 64.75p on Friday evening.