India's Tata Communications has revealed it is considering mounting a takeover bid for Cable & Wireless Worldwide.
Tata will decide whether to make an offer for the British-based backhaul and international cable operator by March 29, Reuters reported.
C&W Worldwide, which spun off from Cable & Wireless in 2010, currently has a market cap of around $1.2 billion.
Tata Communications operates its own extensive subsea cable network, as well as a Tier-1 IP network, making C&W Worldwide a good potential fit.
But the Indian operator may face competition if it decides to bid - Vodafone last month revealed it is in the process of evaluating its own takeover offer for C&W Worldwide.
Tata has also posted losses in its last two annual reports, as well as its report for the first nine months of the current financial year. Its financial position could limit the operator's ability to make a significant bid.
C&W Worldwide reportedly rebuffed an informal $500 million takeover offer for its international assets from Hong Kong and Singapore based Pacnet in mid-2011.
Considering C&W Worldwide's current valuation, if a deal between Tata Communications goes through it could be the biggest British acquisition by an Indian company since fellow Tata Group member Tata Motors acquired Jaguar Land Rover in 2008.