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 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 'Do not give them a reason': Baltimore man divides police and rioters in hope of avoiding violence
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 Baltimore riots: Furious mother marches her son home live on TV
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
Bali Nine executions: Indonesia confirms killings of Andrew Chan and Myuran Sukumaran will go ahead
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
Baltimore riots: Furious mother marches her son home live on TV
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
EU exit would hit UK economy much harder than neighbouring countries, study finds
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...