Vodafone is facing decision time over its attempt to bid for CWW
VODAFONE is set to unveil its intentions regarding Cable & Wireless Worldwide this morning, just days after rival bidder Tata Communications walked away from the table.
The telecoms giant has until noon to put up or shut up after having its deadline extended three times already.
Vodafone first expressed an interest in mid-February. Since then, CWW’s share price almost doubled from 20p before dropping by a quarter last week when Tata declined to bid.
Cable & Wireless Worldwide made headlines last year when it issued three profit warnings, churned through three chief execs and turned a £433m profit into a half-year loss.
But the struggling communications company would give Vodafone a fixed-line mobile network in the UK, alleviating pressure on its wireless network, as well as a roster of corporate clients.
CWW, which was worth £526m before Vodafone piped up two months ago, had a market capitalisation of £879m when markets closed on Friday.
Tata Communications said on Wednesday it had been unable to reach agreement with CWW on an offer price.
It is understood that the Mumbai-based company offered just under 25p per share, or £675m, for the cable business. Analysts said they believed Vodafone would have to offer around 40 pence to get a deal.
Vodafone is advised by UBS, while BarCap and Rothschild are working with CWW.