Cable & Wireless Communications has seen the biggest drop in six weeks in trading on the London Stock Exchange.
Analysts observed that cutting costs at a purchased company in the Bahamas may prove difficult - and this has led to a fall in the stock price.
"The one region that remains very difficult is the Caribbean," Tony Rice, chief executive of the firm, said in an e-mailed statement.
He added that the Caribbean region continues to be "challenging with tourist spend and hence consumer and business disposable income significantly below historic levels".
Founded in 1860, Cable & Wireless specialises in providing communications networks and services.
It provides applications across the UK, Asia Pacific, India, Middle East & Africa, Continental Europe and North America.
The firm is headquartered in Bracknell, Berkshire, and is a constituent of the FTSE 250 Index.
