CWW granted extension for bids

30 March 2012 |

Cable&Wireless Worldwide (CWW) has been granted an extension for potential bidders, namely Tata Communications and Vodafone, to make an offer for the company.

So far neither side has approached CWW with a firm bid or offer but it is hoped that the extension until April 19 would increase the likelihood of one being made.

CWW shareholders have urged the company’s management to be cooperative with bidders. They are understandably anxious for a sale, with the company having been in decline since its split from Cable&Wireless Communications in early 2010.

Recent interest has almost doubled CWW’s share price, which had fallen heavily under the previous management of John Pluthero. His replacement, Gavin Darby, has since set out plans to restructure the business.

Tata’s recent attempts to raise $2 billion in debt is considered an indication that it is serious about an offer, although it is likely that CWW’s international assets are of more interest to the company, rather than its UK fibre network.

This is the second extension granted by the UK’s Takeover Panel after Vodafone first declared its interest in CWW in February.