Tata Comm withdraws from C&WW bid

Dylan Bushell-Embling
19 Apr 2012
00:00

India's Tata Communications has withdrawn from the running to acquire international cable operator Cable & Wireless Worldwide, hours before the deadline to submit an official bid.

The company decided not to make an offer because “it has been unable to reach agreement with C&WW on an offer price,” Tata Comm said in an announcement on the London Stock Exchange.

But the statement adds that Tata Comm “reserves the right to [announce or participate in] an offer or possible offer for C&WW... within the next six months.”

The announcement came ahead of the deadline to make a formal offer later today, and leaves Vodafone as the likely sole bidder for the assets. The bid deadline has already been pushed back by two weeks.

A person familiar with the deal claimed to the UK's The Telegraph newspaper that Tata had been unable to secure a firm financing offer from banks, despite a number of banks indicating their willingness to lend money for the deal.

Tata Comm first revealed it was considering making an offer for C&WW in March, a month after Vodafone expressed an interest.

C&WW is currently worth around £1 billion ($1.6 billion), after a sharp stock spike in the wake of Vodafone's initial announcement.

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.