Vodafone weighs up bid for Cable & Wireless Worldwide

By Sarah Modlock | Mon, 13/02/2012 - 10:08

Vodafone (VOD) said on Monday that Cable and Wireless Worldwide (CW.) was a possible takeover target.

In a statement, Vodafone confirmed that it was in "the very early stages of evaluating the merits of a potential offer" for the company.

Cable and Wireless's (C&WW) shares shot up 30% as the markets opened, while Vodafone stock remained flat.

The attraction for Vodafone, the world's largest mobile operator by revenue, is C&WW's fixed-line network, which could boost bandwidth for its internet customers.

C&WW has issued a string of profit warnings since it split from the former Cable & Wireless in March 2010. It stopped issuing dividends last November and appointed ex-Vodafone executive Garvin Darby as its new chief executive.

The Sunday Times, which had said that Vodafone was considering a £700 million bid for C&WW, also said private equity firm Apax was interested.

Vodafone said on Monday that any bid would be in cash. It added that it will confirmed its intentions one way or another before 17:00 GMT on 12 March, in accordance with the Takeover Code.

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