Tata Communications To Make Formal Cash Offer For Cable & Wireless Worldwide -Source
March 20 2012 - 5:32AM
Dow Jones News
India's Tata Communications Ltd. (500483.BY) has decided to make
a formal cash offer to buy the U.K.'s Cable & Wireless
Worldwide PLC, a person familiar with the development said
Tuesday.
The Tata Group company is likely to raise short-term debt of
upto $2 billion to fund the potential acquisition, the person, who
asked not to be named, told Dow Jones Newswires.
The person added that while the company has received commitments
from banks for raising the funds, final documents haven't been
signed as yet. Also, it isn't clear in what form the debt will be
raised.
Earlier this month, the Indian communications major became the
second company after Vodafone Group PLC (VOD.LN) to express an
interest in buying Cable & Wireless Worldwide, saying it is
evaluating a possible cash offer for the British fiber-optic
network operator.
The process is at a "very preliminary stage," Tata said in a
March 2 filing with the U.K. Takeovers Panel.
Tata Communications, which provides internet services and
undersea cable landing systems, has until March 29 to announce
whether it intends to make a bid or walk away from the deal,
according to the U.K.'s mergers and acquisition rules.
--By Kenan Machado, Dow Jones Newswires; +91-9967586928;
romit.guha@dowjones.com
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