The Britain-based Vodafone Group plc (VOD) is trying to buy Cable & Wireless Worldwide PLC in an effort to meet the growing traffic data. The mobile operator has confirmed its intention while reacting to reports of a possible buy out of Cable & Wireless Worldwide for approximately $1.1 billion.
The Sunday Times also disclosed that Apax Partners LLP is also in the race to buy Cable & Wireless Worldwide, though the company refused to either confirm or deny it.
Cable & Wireless Worldwide is a provider of communication infrastructure and services to users of telecommunications services. The company also offers range of managed voice, data and IP-based services and applications to MNCs, governments, carrier customers and resellers.
The company has been hived off from its parent company only in 2010 and is in the process of reorganizing itself following successive CEOs Jim Marsh and John Pluthero resigned from their positions last year. Cable & Wireless Worldwide stock plummeted more than 70 percent last year after the exit of the successive CEOs.
Vodafone is interested in the company because of the network infrastructure that Cable & Wireless Worldwide has. Not only Vodafone, but also other mobile operators from Britain are evincing interest though analysts term the assets as not attractive. The company's assets range from core fiber network in the U.K. to an overseas enterprise division. The company's network services cover 150 nations either directly or indirectly through local partners.
Cable & Wireless is undergoing a tough phase. The company suffered a loss for the first half that was unfavorably impacted by goodwill write down besides tax charges and weak revenues. On top of this, the company planned to stop dividend payments too.
Now, Vodafone has time till March 12 to take a call on its bid to buy Cable & Wireless Worldwide under the U.K. takeover code, otherwise it may have to stay away for another six months.
Vodafone also hinted that its confirmation cannot be taken as certainty that a bid will be made or the terms on which the offer would be made.