C&W Confirms Ongoing Talks With Vodafone As Tata Withdraws

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

Capital Lodging (NYSE:TCL)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024