Cable & Wireless clinched the takeover of Energis today after surviving an eleventh hour attempt by rival bidder Thus to scupper the telecoms tie-up.

The deal, which is worth an initial £594 million, will add a clutch of corporate customers, including the BBC, RAC and Royal & Sun Alliance, and strengthen C&W's position in the highly competitive telecoms market.

However, C&W warned the combination of the two businesses would result in the loss of 700 jobs by March 2008, as it looks for £80 million of annual savings.

The proposed tie-up, which was revealed last month, was almost derailed after some holders of Energis debt threatened to block the deal if the price was not increased. C&W gave the funds until 5pm last night to back the takeover. Earlier, Glasgow-based Thus shocked the industry when it tabled a counter proposal worth £800 million. It is a quarter the size of Energis but had raised £600 million in cash with the rest set to be paid in its shares.

Privately-owned Energis offers products and services ranging from contact centres to data, voice and internet. It employs about 1,550 people in London, Reading, Leeds and Dublin.