Cable & Wireless yesterday angrily dismissed reports that Government rejected a bid by it to buy an 80 percent interest in Quantum Communications.

And a spokeswoman from Quantum's major shareholder BELCO Holdings stressed yesterday that despite some reports to the contrary there were still two companies in the confidential bidding process -- down from an original five.

Early in March Quantum announced the company was being offered for sale by its shareholders after only 50 customers, all corporate, signed up during its first 18 months.

During that time legal wrangling with BTC over the wording of the relevant legislation dragged on interminably -- casting a shadow of doubt on Quantum's future.

BELCO Holdings Ltd. and C&W hold about 45 percent and 35 percent respectively of Quantum.

C&W General manager Eddie Saints yesterday said there was "absolutely no truth'' in various media reports that the company had submitted a proposal to increase its holdings in Quantum to Telecommunications Minister Renee Webb.

And since no proposal was ever submitted he said it was ludicrous to suggest that a rejection from the Minister had thwarted an attempt by Cable & Wireless to get a foothold in the local telephone service market.

"When it became clear that Quantum needed restructuring, we undertook a review of our option,'' he said.

"One such option was to examine whether Cable & Wireless was in a position to increase its Quantum share holding.

"However, having undertaken our own due diligence in the matter, we made the decision ourselves not to pursue this option.

"At no time did we submit an application or proposal to Government to increase our share holding in Quantum, nor was any such application or proposal rejected.'' Mr. Saints blasted some elements of the media -- the inaccurate report was broadcast over the radio -- for issuing wrong information irresponsibly, without even calling Cable & Wireless to check out the facts.

"I am concerned by the amount of erroneous information which is currently pervading the telecommunications scene in Bermuda, whether by accident or design,'' he said.

"In that context, it is unfortunate that we were not contacted for comment prior to this story being aired.

"Had we been, we would have been able to correct this very misleading and inaccurate story.'' The other party rumoured to be involved in the bidding war for Quantum, the Island's largest Internet service provider Logic Communications, has not returned telephone calls from The Royal Gazette all week.

Some have suggested if Logic Communications -- a sister company of Bermuda's only local telephone provider BTC -- succeeded in a bid to buy Quantum it would throw Government's efforts to introduce competition into the market.

Another rumoured bidder, Halifax-based Maritime Telephone and Telegraph Co., has confirmed it was not interested in buying Quantum.