Top CWW shareholder rejects sale to Vodafone
Tuesday 24 April 2012
Vodafone yesterday launched a £1bn bid for Cable & Wireless Worldwide, only to have the target's leading shareholder reject it within hours.
Vodafone chief executive, Vittorio Colao, hailed the long-anticipated CWW takeover, saying it would mean his company becomes the second-biggest telecoms firmin Britain.
"We will move from No 4 position to No 2," declared Mr Colao, pointing out how it will leapfrog Everything Everywhere and Telefonica's O2 to be second only to BT in terms of UK sales. The combined Vodafone-CWW business will have British revenues of almost £7bn a year.
CWW's board has unanimously backed the 38p-a-share cash offer, but Orbis, which holds 19 per cent of CWW, claimed: "The offer price does not appear to reflect the value inherent in CWW."
Mr Colao now faces a battle to persuade CWW shareholders. So far, 18.6 per cent have backed the takeover but Vodafone needs the support of three-quarters of investors.
CWW shares jumped 12 per cent to 35.9p yesterday on news of the deal,but that is still below the offerprice, reflecting uncertainty inthe City.
The shares had plunged as much as 20 per cent last week after India's Tata Communications pulled its rival bid last week. Tata could yet make a fresh offer for CWW.
Vodafone is paying a 92 per cent premium to CWW's share price before the talks. However, CWW's value has fallen more than 60 per cent since 2010 after its split from the mobile operation Cable & Wireless Communications.
Mr Colao said CWW will complement Vodafone's own mobile network as customers look for "unified communications services" from one telecoms provider.
Vodafone dismissed speculation that buying CWW, which has run up huge losses, could have tax benefits. "Vodafone does not believe it can utilise CWW's tax losses," said the mobile giant.
- 1 Scarlett Johansson new band 'already hit with legal complaint' from another The Singles
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Husband and wife die holding hands within hours of each other after 67 years of marriage
Mohammed Emwazi: Nine things we know about Isis militant 'Jihadi John'
What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
'Jihadi John': Mohammed Emwazi – from British computer programmer to Isis executioner
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...
£22,000 - £23,000: Beverley James: Are you looking for the opportunity to work...