Partner Article

Vodaphone’s £1.04bn bid for CWW gets go-ahead

Vodafone’s £1.04 billion offer for Cable & Wireless Worldwide (CWW) looks likely to succeed, after opposition to the deal was dropped by the fixed line operators biggest shareholder.

Orbis has now expressed support for the 38 pence-a-share offer, after it was revealed that the 59% shareholder had already backed the takeover bid which would make Vodafone Britain’s second largest telecoms operator after BT.

Vodafone is the world’s biggest mobile firm, and has pledged to strengthen its integrated corporate services in the UK and internationally. CWW have 20,500 kilometres of optical fibre worldwide, and it is hoped that this will support the desires of smartphone users for mobile data services, without having to rent fixed line capacity from BT.

Initially Vodafone’s offer was rejected by Orbis, who accused the firm of undervaluing its assets but relented prior to a CWW shareholder meeting on Monday to approve the takeover via a scheme of arrangement.

Orbis hold a 19% stake in CWW, and made the decision to back the Vodafone bid,after it appeared likely that the telecoms giant would adjourn meetings to obtain 75% support from shareholders.

A spokesperson told Reuters: “This is not in the interests of any CWW stakeholder. Accordingly, Orbis intends to vote in favour of the scheme at the meetings today.”

The news sent shares in Cable & Wireless Worldwide up 8 percent to 37.8 pence. Vodafone shares were up 0.2 percent.

This was posted in Bdaily's Members' News section by Ruth Mitchell .