Cable & Wireless Worldwide (C&WW) bosses today approved a cash offer by Vodafone Europe that values the firm at just over £1 billion (€1.2 billion).
The offer of £0.38 per share covers all holdings in C&WW, and will only be reviewed if another party now enters the fray to bid for the firm. However, such competition seems unlikely given Tata Communications - Vodafone’s only reported rival for C&WW – pulled out of the race last week.
Assuming shareholders follow C&WW management’s recommendation to sell, the firm will become a division of Vodafone Group’s enterprise business. Chief Vittorio Colao says the acquisition “creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.”
C&WW chairman John Barton explains the Vodafone bid “will enable shareholders to crystallize a value, 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.”
The operator twice extended the deadline for bids as Vodafone and Tata squared up for control of the company.