Telecoms group Cable & Wireless has confirmed that it is in "active discussions" about a buyout of its £2bn (€2.5bn) UK defined benefit pension scheme, in a deal that would be the largest of its kind to date.

Cable & Wireless, which is considering a demerger of its UK and international divisions, said in its preliminary results statement today: "We are in active discussions regarding options to further de-risk the pension scheme, although these options, including an insurance buyout, are not a precondition for value realisation."