Singapore Telecommunications (STEL.SI) is considering a bid for FTSE 100 group Cable & Wireless Worldwide (CWP.L), The Independent on Sunday reported.

The newspaper said Southeast Asia's largest telecom firm had contacted bankers in Asia and Europe to discuss the idea. It cited a corporate adviser as saying SingTel was in the early stages of its plans but a takeover attempt was a possibility.

"SingTel is running the slide rule over Cable & Wireless. It's less than 10% of the way through the process but has contacted investment banks in Hong Kong, Singapore and London," the source was quoted as saying.

Neither company was immediately available for comment. Shares in Cable & Wireless Worldwide rose sharply last week with traders citing market talk of bid interest from US rival AT&T (T.N).