Tata triggers £1bn bid battle for CWW
Friday 02 March 2012
Shares in Cable & Wireless Worldwide shot up 15 per cent yesterday as Tata Communications of India said it may make a rival offer to the near £1bn hostile bid from Vodafone.
The unexpected emergence of a potential battle for control of the UK's largest business-facing fibre network sent CWW's shares up 4.1p to 31.98p – their highest level for six months.
Tata Communications said it was evaluating a cash bid for CWW, but emphasised that it was at a "very preliminary stage" of considering making an offer. Under Takeover Panel rules it has until 29 March to make up its mind, while Vodafone has until 12 March.
Tata is no stranger to making large acquisitions in the UK. The parent company, Tata Group, bought the steel maker Corus for £13.1bn in 2007 and Jaguar Land Rover for £12bn in 2008.
It is being advised by Standard Chartered, the emerging markets bank, which is also handling the defence on the £1.2bn contested takeover for Cove Energy.
CWW merely said that it noted Tata's interest and advised its shareholders to do nothing.
Shares in CWW had lost more than 70 per cent of their value in the less than two years since it demerged from the international business Cable & Wireless Communications. It has also lost two chief executives in the last year, with the latest, John Pluthero, departing after just six months in charge, having issued a series of profit warnings.
Analysts believe that several private equity firms are also looking at CWW.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
London bus driver allegedly kicks gay couple off for kissing
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...