Tata fails to reach offer price agreement for CWW
19 April 2012 | Kavit Majithia
Vodafone remains the only likely bidder to acquire Cable&Wireless Worldwide after Tata Communications said late Wednesday evening it could not reach an agreement on an offer price.
It is expected Vodafone will table its bid by today’s 5pm deadline, but sources close to the matter claim an extension to the present deadline is also possible. Vodafone confirmed it is still in talks with CWW to agree a price, with the Financial Times reporting there is increasing pressure from CWW shareholders to agree a deal after Tata’s apparent withdrawal. Shareholders are rumoured to be keen for an exit at a price that offsets their losses, since CWW began to perform badly after it split from the consumer side of the company.
CWW’s share price dropped by more than 25% on Thursday morning as an offset of Tata’s announcement. Tata has declined to comment on price but confirmed it would not be making a bid for CWW at the moment.
“TCL today confirms that it has been unable to reach an agreement with CWW on an offer price and therefore confirms that it does not intend to make an offer for CWW.”
With greater synergies and a complementing operation in the UK, Vodafone was always expected to pay a higher price to acquire the troubled fixed-line operator. Tata’s failure to reach an agreement will be seen as a letdown for the company if it does not renew its interest. Tata has recently targeted a strategy for growth in emerging markets, Europe and the western economies.
Stay with Capacity for all the latest developments regarding the possible acquisition of Cable&Wireless Worldwide throughout the day.
15h | Jason McGee-Abe
15h | Alan Burkitt-Gray
16h | Natalie Bannerman
17h | Alan Burkitt-Gray