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.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...