C&W Confirms Ongoing Talks With Vodafone As Tata Withdraws
April 18 2012 - 1:32PM
Dow Jones News
U.K. telecommunications company Cable & Wireless Worldwide
PLC (CW.LN) Wednesday said it remains in talks with Vodafone Group
PLC (VOD.LN) about a potential takeover bid from the operator, as
Tata Communications Ltd. (TCL) said it won't make an offer for
C&W Worldwide.
The Indian conglomerate said it had been unable to agree a price
with C&W Worldwide.
"The Board of CWW notes the announcement today by Tata and
confirms that discussions with Vodafone are ongoing," C&W
Worldwide said.
Vodafone first disclosed it was in the early stages of
evaluating a takeover bid for C&W Worldwide--which counts
U.K.-based telecommunications operator BT Group PLC (BT.A.LN) as
one of its biggest rivals--on Feb. 13.
A few weeks later, Tata Communications said it, too, was mulling
a bid for the company.
C&W Worldwide owns the U.K's biggest fiber network dedicated
to businesses. It also has an international cable network that
reaches across Europe, India and throughout Asia. But it has had a
tough time since its spinoff from parent Cable & Wireless PLC
in 2010, suffering a sliding stock price and several management
changes.
For Vodafone, the acquisition would support margins and improve
network quality in the U.K. It would also support the global
enterprise business, in which Vodafone is currently investing,
according to brokerage firm Sanford C. Bernstein.
The U.K. telecom giant now has until close of business Thursday
to submit an offer or walk away.
C&W Worldwide shares closed up 2.6% at 37 pence, giving the
company a market capitalization of GBP1 billion. Vodafone shares
closed down 1.5% at 170 pence, valuing the company at GBP84.2
billion.
-By Marietta Cauchi and Lilly Vitorovich, Dow Jones Newswires;
+44 207 842 9241; marietta.cauchi@dowjones.com
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