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.
Threat of 'catastrophic cascade of collisions' involving 300,000 pieces of rubbish must be averted, warn scientists
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Oxford is the least affordable city in the UK, where houses cost 11 times local salaries
- 2 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 3 North Korea elections: Kim Jong-un wins 100% of the vote
- 4 David Cameron resorts to paying for Facebook fans because not enough people like him
- 5 Steve Irwin’s final words: Cameraman present at death opens up about deadly stingray attack for the first time
iJobs Money & Business
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£55000 - £70000 per annum + benefits: Pro-Recruitment Group: In-House Corporat...
£80000 - £100000 per annum + benefits: Pro-Recruitment Group: In-House Opportu...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...