Vodafone buys Cable & Wireless Worldwide in deal with £1.04 billion
CWW shareholders will be offered 38 pence a share in cash
By CFO World staff | CFO UK | Published 08:55, 23 April 12
Vodafone secured a deal to buy Cable & Wireless Worldwide for £1.04 billion on Monday, adding a British fixed line network to its wireless network, the company said.
As part of the deal with Vodafone, CWW shareholders will be offered 38 pence a share in cash, a 92 percent premium on the price Vodafone offered before it declared its interest in February
"The acquisition of Cable & Wireless Worldwide 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,” Vittorio Colao, chief executive of Vodafone, said.
CWW has issued three profit warnings, had the same number of chief executives and has suspended it dividend since the group split from the former Cable & Wireless in March 2010.
But CWW has a fibre network that would increase capacity for Vodafone, and it has contracts to provide voice, data and hosting services to government departments and companies.
India's Tata Communications was also in talks to buy CWW, but it withdrew last week.
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