Vodafone wins ISS backing for CWW takeover while Orbis is undecided

08 June 2012 |

A leading Cable&Wireless Worldwide (CWW) shareholder Institutional Shareholder Services (ISS) has reportedly recommended that CWW’s shareholders accept Vodafone’s offer of 38p a share ahead of a decisive meeting on June 18.

The UK’s Telegraph newspaper reports that ISS, which is influential among a small group of shareholders and private stockbrokers who hold approximately 10% stock, gave the advice based on a reasonable sales process, adequate valuation and risk to investors in turning the company around.

To date, the bid has been publically backed by 18.6% of CWW’s shareholders, with pledges from about another 10%.

Vodafone requires 75% of CWW’s stock for its £1.04 billion takeover bid to succeed.

Elsewhere CWW’s largest shareholder Orbis, which had previously refused to back the Vodafone bid stating that it undervalued the company’s assets, revealed that it would make a decision on how to vote shortly before the meetings on June 18.

Orbis holds a 19% stake in CWW and has said that it would be comfortable retaining its shares in the company if the Vodafone takeover succeeded.