UPDATE 3-Liberty Global in talks to buy Cable & Wireless
* Cable & Wireless says discussing possible cash-and-stock offer
* Cable & Wireless shares soar 20.7 pct
* Deal could expand Liberty's foothold in Caribbean
* 'King of Cable' John Malone backs both companies (Adds Liberty Global statement)
By Mamidipudi Soumithri and Devika Krishna Kumar
Oct 22 (Reuters) - Liberty Global Plc is in talks with Cable & Wireless Communications Plc about a potential deal to unite two companies backed by billionaire cable pioneer John Malone and extend Liberty's reach in the Caribbean.
Cable & Wireless, valued at slightly more than 3 billion pounds ($4.6 billion) as of Thursday's close, said talks were under way regarding a possible cash-and-stock bid by Liberty. It said they were not certain to result in an offer.
Liberty Global confirmed the discussions. According to UK law, it has until Nov. 19 either to make an offer or to announce that it does not intend to buy the company.
Based in London, Cable & Wireless describes itself as "the go-to player in the Caribbean and Latin America". It introduced the first telegraph services to the region in the 1870s, the company says on its website. Continuación...