Vodafone considers bid for Cable & Wireless

 

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By Barry Collins

Posted on 13 Feb 2012 at 09:20

Vodafone is considering a bid for the owner of the UK's biggest fibre network, Cable & Wireless Worldwide (CWW).

In a statement sent out in response to "press speculation", Vodafone admits it's interested in the telecoms firm, but hasn't yet decided to make a formal bid.

"Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW," the statement reads.

"There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate."

Although no firm offer is on the table, the news was enough to send shares in Cable & Wireless rocketing, jumping from 19.6p on Friday to 25.2p at the time of publication.

Cable & Wireless Worldwide demerged from Cable & Wireless PLC in 2010. CWW provides the communications infrastructure for several of Britain's biggest companies, including Tesco, the National Grid and Boots.

The potential takeover could allow Vodafone to extend its fixed-line broadband services, allowing it to offer high-speed fibre services to businesses and consumers without having to rent lines on a wholesale basis from BT.

O2 has also been linked with a bid for the company.