CWW snapped up by Vodafone

23 Apr 2012

Vodafone Group has reached an agreement with Cable & Wireless Worldwide (CWW) to acquire the UK fixed line network operator for approximately GBP1.044 billion (USD1.7 billion) in cash. Vodafone, which is offering CWW shareholders GBP0.38 a share in cash, may use CWW’s fibre network to bolster bandwidth for customers’ increasing demand for data services on its mobile network. ‘We are pleased to reach [an] agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer,’ said Vittorio Colao, chief executive of Vodafone, adding: ‘The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.’ Last week Vodafone became the only bidder for CWW after India’s Tata Communications said it had been unable to reach an agreement with the firm on a price and as such had decided not to submit an offer.

CWW was officially established as a standalone company on 26 March 2010 as part of the demerger of UK-based Cable & Wireless (C&W), notes TeleGeography’s GlobalComms Database; the unit had previously been known as C&W’s ‘Europe, Asia & US’ division.

United Kingdom, Cable & Wireless Worldwide, Vodafone Group