Vodafone Group’s acquisition of British fixed line company Cable & Wireless Worldwide (CWW) looks set to go ahead, after the bid was approved by almost 88% of CWW’s shareholders. According to Bloomberg, a shareholder vote on the issue yesterday saw 87.5% of CWW shareholders vote in favour of Vodafone’s proposal, easily surpassing the 75% approval level required for the GBP1.04 billion (USD1.6 billion) deal to progress. The development comes in the wake of reports yesterday that one of CWW’s largest shareholders, Bermuda-based Orbis (which holds a 19% stake in CWW), had decided not to oppose the stake sale, despite having previously claimed that Vodafone’s price per share undervalued the company.
As previously reported by CommsUpdate, in April 2012 Vodafone Group revealed that it had reached an agreement to acquire CWW for approximately GBP1.044 billion in cash, with the former expected to use CWW’s fibre network to bolster bandwidth for customers’ increasing demand for data services on its mobile network. Commenting on the deal at the time of its announcement, Vodafone Group CEO Vittorio Colao noted: ‘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.’