Vodafone makes US$1.7 billion bid for CWW

Vodafone has confirmed that it is to make a takeover bid for the UK based Cable & Wireless Worldwide and will be offering £1.044 billion (US$1.7 billion) for the company.

The offer of 38 pence per CWW share represents a 92 per cent premium over the share price the day before speculation of a takeover bid was confirmed on February 10 – although it is far below what the shares were worth on their demerger in March 2010.

Vodafone said that the acquisition will strengthen its enterprise business in the UK and internationally and presents attractive network and other cost saving opportunities for Vodafone Group.

CWW has an extensive UK fibre network that fits well with the location of Vodafone’s UK base stations. The company also has an international network that Vodafone expects to exploit for its own IP based traffic needs.

Vodafone has already secured approvals from corporate shareholders holding 18.6 per cent of the company shares.