India's Tata Communications will decide whether to mount a takeover bid for Cable & Wireless Worldwide by the end of the month.
The UK-based backhaul and international cable operator, which was spun off from Cable & Wireless in 2010, currently has a market cap of around $1.2 billion (€906 million), Reuters reports, and could make a good fit for Tata, which operates an extensive subsea cable network, as well as a Tier-1 IP network.
But the Indian operator could face competition if it decides to bid. Vodafone last month revealed it is in the process of evaluating its own takeover offer for C&W Worldwide. Tata may also be limited by its financial position, having posted losses in its last two annual reports, and in the first nine months of the current financial year.
C&W Worldwide reportedly rebuffed an informal $500 million takeover offer for its international assets from Hong Kong and Singapore based Pacnet in mid-2011.
Considering C&W Worldwide's current valuation, if a deal between Tata Communications goes through it could be the biggest British acquisition by an Indian company since fellow Tata Group member Tata Motors acquired Jaguar Land Rover in 2008.