Vodafone acquires Cable & Wireless Worldwide

Vodafone, one of the leading telecommunications providers in the UK has agreed to take over Cable & Wireless Worldwide (CWW), a British multinational telecommunications services company, for 1.04 billion Pounds. 38 P, a share offer came before the deadline. The UK Takeover Panel had extended the deadline from previous Thursday.

Last week, Tata Communications from India withdrew from the bid and Vodafone became the sole bidder. As for Vodafone, the acquisition of CWW would help to relieve pressure on mobile networks by using its fibre network and it would also increase Vodafone’s capacity. Not only that CWW has contracts with many major companies like United Utilities and Tesco, to provide various services and contracts with the British Government to provide hosting services to various departments.

It is believed that Vodafone wants to break up Cable & Wireless and is going to sell CWW’s under-sea cables operation. In March 2010, CWW split from the former Cable & Wireless Communications and there started its bad time. The recession, the decline in the use of fixed-line calls, the resignation of its CEO John Pluthero and the issuance of three profit warnings and the suspension of dividend all added fuel to fire.

Vodafone’s Chief Executive Mr Vittorio Colao said that the purchase of CWW would be beneficial to the company and it would make it possible for Vodafone to implement many cost saving measures to its national and international operations.

The board of the Cable & Wireless appealed to the shareholders of the company to accept the offer and Vodafone revealed that it has already got acceptance from almost 20% of shareholders.

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