Member Article

Vodafone acquire Cable & Wireless Worldwide

Vodafone is to take over global telecoms company Cable & Wireless (C&WW) following a deal valuing the firm at over £1bn.

The acquisition is said to strengthen Vodafone Group in the UK and internationally, and present network and cost-saving opportunities.

Under the terms of the agreement, Vodafone will pay 38 pence for each C&WW share held.

Commenting on the Offer, Vittorio Colao, CEO of Vodafone Group, said: “We are pleased to reach agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer.

“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.

“We look forward to working with the management and employees of Cable & Wireless Worldwide to combine our expertise for the benefit of our customers and shareholders.”

John Barton, Chairman of CWW, added: “Under the leadership of Gavin Darby, Cable & Wireless Worldwide has outlined a strategy to refocus the business on achieving sustainable cash generation and returns from capital invested.

“However, the offer from Vodafone announced today will enable shareholders to crystallise a value, in cash, that represents a significant premium to recent trading levels and avoid exposure to the risks inevitably presented by executing a medium-term improvement strategy.

“Furthermore, the combination with Vodafone represents an exciting opportunity for Cable & Wireless Worldwide’s customers, employees, partners and other stakeholders to benefit from the many advantages that will come from being part of the Vodafone Group.”

This was posted in Bdaily's Members' News section by Tom Keighley .