Telecom Lead Europe: Mobile service provider Vodafone will buy
Cable and Wireless Worldwide (CWW) for around 1.04 billion pounds ($1.67
billion).
cash offer pursuant to which Vodafone will acquire the entire issued and to be
issued ordinary share capital of CWW.
Besides offering fixed lines that are used by mobile
operators to provide links to mobile transmitters and switching offices, CWW provides
voice, data and hosting services to major British companies such as Next, Tesco
and United Utilities, and retains an international cable network connecting
more than 150 countries.
UK and internationally.
CWW shareholders will receive 38 pence in cash for each CWW
share held. This is a premium of 92 percent to the closing price of 19.8 pence
per CWW share on February 10, 2012, which was the last business day, prior to
the commencement of the offer period.
enterprise segment of the UK communications market and brings attractive cost
savings to our UK and international operations,” said Vodafone Group CEO
Vittorio Colao.
in cash, that represents a significant premium to recent trading levels and
avoid exposure to the risks inevitably presented by executing a medium-term
improvement strategy,” CWW Chairman John Barton said.
set to buy Cable & Wireless for $1.8 billion?
According to the 2011 annual report, 700 million pounds of
CWW’s 2.2 billion pounds in annual revenues comes from carriers. More
than 60 percent of its international revenues of 557
million pounds are accounted for by carriers.
In the U.K., CWW has contracts with 70 of the 100 largest
blue chip companies, according to Barclays Capital, as well as the BBC and
government departments such as the Foreign and Commonwealth Office.
Worldwide
Last week, Tata Communications pulled out from the race for
Cable & Wireless Worldwide. Tata Communications has decided not to spend $2
billion on Cable & Wireless Worldwide as Tata Communications could not
reach an agreement with CWW on offer price.
