20 mar: Spks. Lolland/fmd: Vi ønskede ikke direktørafgang
30 mar: Valuta: Euro-skeptikerne slår bak
20-03-2012 11:10:00

UPDATE: Tata Communications To Make Formal Cash Offer For Cable & Wireless Worldwide - Source

Relateret indhold

--Tata Communications to make a formal cash offer for Cable & Wireless, says person familiar with the matter

--Tata Communications will raise up to $2 billion in short-term debt to fund the potential purchase, says the person

--Tata Communications is likely to raise debt via a special purpose vehicle, registered in the Netherlands, says the person

(Recasts lead and adds details throughout.)

By Kenan Machado

Of DOW JONES NEWSWIRES

MUMBAI -(Dow Jones)- India's Tata Communications Ltd. (500483.BY) will make a formal cash offer to buy the U.K.'s Cable & Wireless Worldwide PLC (CW.LN), and plans to raise up to $2 billion in debt to finance the potential acquisition, a person familiar with the situation said Tuesday.

Tata's decision to bid for the U.K.-based telecom firm sets the stage for a bidding war with U.K. telecom giant Vodafone Group PLC (VOD.LN) which has expressed an interest in Cable & Wireless earlier this month. Vodafone has until March 29 to make a binding offer for the British fiber-optic network operator.

The person familiar with the situation said Tata has received commitments from banks to raise funds although final documents haven't yet been signed. Tata will likely raise the debt via a special purpose vehicle registered in an offshore country, likely the Netherlands, because of favorable tax laws, the person said. Vodafone declined to comment.

Sanford C. Bernstein in a recent report estimated that an acquisition could be valued at GBP700 million to GBP900 million, or roughly $1.1 billion to $1.4 billion.

A bid by Tata is yet another signal of the increasing appetite of Indian companies for global assets as they look to establish and consolidate their presence around the world. Tata Communications, part of the Tata Group conglomerate, has been ahead of the acquisition pack by Indian companies. The salt-to-software company has spent about $17.37 billion on foreign acquisitions since 2001, with GBP9.57 billion spent in the U.K. alone. Its notable British purchases include the Tetley Group for $432 million in 2000, U.K.-headquartered Corus Group in 2007 for $12.2 billion, and Jaguar Land Rover PLC for $2.3 billion in 2008.

Analysts say a successful bid by Tata Communications will help the provider of Internet services and undersea cable landing systems access Cable & Wireless's enterprise customers in Europe, helping the Indian company offset the losses in its main voice business.

Cable & Wireless has been struggling since its spinoff from parent Cable & Wireless PLC in 2010. Before news of the potential bids, its shares had fallen around 73% over the 12 months following three profit warnings, which it blamed on the U.K. government's austerity budget.

The company's chief executive, John Pluthero, left in November, and was replaced by former Vodafone executive Gavin Darby. Financial chief Tim Weller also left in July, with deputy finance chief Ian Gibson taking his place.

Cable & Wireless shares surged on the news of an impending Tata Communications offer. At 1034 GMT, they were up 3 pence, or 7.3%, at 37 pence, valuing the company at GBP1.03 billion. The company is the highest riser on the FTSE 250 index, which is down 1.2%. The Indian company closed 3.2% higher at INR230.35 each in a positive broad market.

Tata Communications would have to make a bid "in the order of 45 pence-a-share in very rough terms" to get Cable & Wireless board support, said Tom Gidley-Kitchin, an analyst at Charles Stanley.

He added that Tata Communications' first offer may not be its last.

A bid from Tata Communications makes more sense than a bid from Vodafone given Tata Group's history of turning around companies like Corus and Jaguar, he said.

-By Kenan Machado and Romit Guha, Dow Jones Newswires; +91-9967586928; romit.guha@dowjones.com

--Lilly Vitorovich in London contributed to the story.

(END) Dow Jones Newswires

March 20, 2012 07:10 ET (11:10 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Aktier/tendens: Mærsk kan blive sejlet agterud

31-07-2015 08:34:53
A.P. Møller - Mærsk kan meget vel få opmærksomhed fredag morgen, hvor der er kommet nyheder fra flere verdenshjørner. Fra USA er det et nedjusteret kursmål, der..

Gamesa falder voldsomt på børsen efter regnskabet

30-07-2015 16:02:38
Det spanske vindmølleselskab Gamesa har formået af fordoble indtjeningen i årets første halvdel, mens omsætningen samtidig er steget med omkring 30 pct. Alligev..

Aktier/middag: C20 går lidt tilbage efter morgenens fremgang

30-07-2015 11:40:07
Novo Nordisk fører an i C20 på en dag, der er præget af en stime af regnskaber fra det europæiske kontinent.C20 Cap-indekset torsdag middag er relativt ligeligt..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Torsdagens aktier: Vestas bundprop i rødt C20
2
Gamesa falder voldsomt på børsen efter regnskabet
3
Grækenland: IMF kan måske ikke tilslutte sig redning - NY2
4
Aktier/middag: C20 går lidt tilbage efter morgenens fremgang
5
Aktier/tendens: Mærsk kan blive sejlet agterud

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2015  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
31. juli 2015 11:24:18
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20150716.1 - EUROWEB6 - 2015-07-31 11:24:18 - 2015-07-31 11:24:18 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x