Anyone knows about the recent speculation of big contracts coming up at C&W ??? Would welcome any threads. Thanks.

UK's Cable & Wireless jumps on ABN AMRO optimism

LONDON, Dec 19 (Reuters) - British telecoms firm Cable & Wireless Plc topped the FTSE 100 (^FTSE - news) gainers list on Friday, recovering from a two-month low after C&W's house broker ABN AMRO (Amsterdam: AAH.AS - news) told clients the stock looked cheap.

C&W shares were up 5.3 percent at 133-1/4 pence by midday. Volume was heavy, with over 34 million shares changing hands, above the 90-day average volume of 29.6 million. Earlier in the week, C&W touched 123-1/4p, its lowest level since mid-October.

"Since C&W announced their U.S. exit the stock has drifted off around 10 percent and I think the main reason for that is people have been reducing beta in their portfolios towards the end of the year, but I do think the downside risk has minimalised," said ABN AMRO analyst Richard Eary.

"Even if the markets turn and look for low-beta stocks next year and go back to value plays, C&W should also come up on radar screens given its cash pile, low multiples and ability to increase the dividend side or potentially embark on share buy-backs," Eary added. He has an "add" rating on C&W, with a price target of 148p.

C&W shares have been the star performer of the blue-chip FTSE index in 2003. Friday's rise brings its increase in the year so far to a massive 196 percent. The next best gainer looks set to be mobile phone company mmO2 , up 74 percent at 77p since the beginning of January.

RNS Number : 2649X

Vodafone Group Plc

13 February 2012

13 February 2012

RESPONSE TO PRESS SPECULATION

Vodafone notes the recent press speculation regarding Cable & Wireless Worldwide plc ("CWW").

Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW. There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate.

In accordance with Rule 2.6a of the Takeover Code, Vodafone is required to, by not later than 5pm on 13 March 2012, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies unless the Panel on Takeovers and Mergers has consented to an extension of this deadline.

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Still in auction - trades going through @27p - which is nice!

what price would be a fair T/o price? SP opened up 25% up but doesn't appear to be doing much. would consider an entry <25p but not mad it there yet.

Statement re. Press Comment - Amendment
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RNS Number : 2834X

Vodafone Group Plc

13 February 2012

This replaces the announcement issued by Vodafone Group at 07:00 this morning under RNS Number 2649X. The date in paragraph 3 should read 12 March 2012 not 13 March 2012 as originally issued.

13 February 2012

RESPONSE TO PRESS SPECULATION (UPDATED)

Vodafone notes the recent press speculation regarding Cable & Wireless Worldwide plc ("CWW").

Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW. There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate.

In accordance with Rule 2.6a of the Takeover Code, Vodafone is required to, by not later than 5pm on 12 March 2012, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies unless the Panel on Takeovers and Mergers has consented to an extension of this deadline.

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I hold from 75p down to 18p. I am close to break-even now!

in at 24.85p will wait and see what unfolds.

How very fortuitous!

And now Legal and General.

RNS Number : 3145X

Cable & Wireless Worldwide PLC

13 February 2012

13 February 2012

STATEMENT IN RESPONSE TO ANNOUNCEMENT

BY Vodafone GROUP PLC

The Board of Cable & Wireless Worldwide plc ("C&W Worldwide") notes the announcement by Vodafone Group plc ("Vodafone") today that it is in the very early stages of evaluating the merits of a potential offer for C&W Worldwide.

The Board will make any further announcement as may be required in due course.

In accordance with Rule 2.10 of The City Code on Takeovers and Mergers, C&W Worldwide confirms that it has the following relevant securities in issue: 2,746,100,010 ordinary shares of 5 pence each (with International Securities Identification Number GB00B5WB0X89); and 2300 convertible bonds of GBP100,000 each due 2014 (with International Securities Identification Number XS0468712863).

A copy of this announcement will be available at www.cw.com. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

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A bit of momentum now - +36.5%

In auction +39.7%

how far up will the SP go on news of poss T/o? is it worth top slicing and trading or better to just let it run?

I guess it depends on your own comfort zone.

am happy to hold but wondering if it would be better to trade. have only got a small punt on it

just thinking there might be a bit of a sell off at COB

Its hard to call - but its never wrong to take a profit.

top sliced at 28.89p 20% profit for day will look again tomorrow

Still holding all mine. Think there will be further progression in SP over next few days. Cant ever knock those locking in profits. Good luck to those who hold........

Just a view reported today in The Globe and Mail


Vodafone weighs bid for C&W Worldwide


Paul Sandle and Victoria Howley LONDON

Published Monday, Feb. 13, 2012 7:46AM EST

Last updated Monday, Feb. 13, 2012 7:56AM EST


Vodafone Group , the world’s largest mobile operator by revenue, is considering a bid for Britain’s Cable & Wireless Worldwide, whose fixed-line network could boost bandwidth for its Internet-hungry customers.

“Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW,” the company said on Monday.

C&W Worldwide, which has issued a string of profit warnings since its demerger from Cable & Wireless Communications in March, 2010, has fixed lines that are used by mobile operators to provide links to mobile transmitters and switching offices – a process known as wholesale backhaul.

It also provides voice, data and hosting services to companies like Next, Tesco and United Utilities, and retains an international cable network connecting more than 150 countries.

It declined to comment on Vodafone’s statement, which came after the Sunday Times reported it was considering a £700-million ($1.1-billion U.S.) bid for the group.

C&W Worldwide’s shares, which have lost three-quarters of their value in the last 18 months, surged 30 per cent to a three-month high of 25.5 pence on Monday, valuing the company at £700-million, while Vodafone rose 0.9 per cent to £1.74.

Tim Daniels, analyst at Olivetree Securities, said a deal could make sense for Vodafone because it had no fixed-line network in Britain in contrast to many other markets where it had integrated fixed and wireless networks.

“Pressure on data networks from smartphones and tablets means that mobile companies can’t cope with all the traffic and have to move some of the overspill onto fixed-line networks,” he said.

Vodafone could also get some corporate customers “on the cheap” by doing a deal, he added.

Broker Bernstein agreed that buying C&W Worldwide’s fibre network would improve Vodafone’s U.K. network quality and would limit the charges it had to pay to rent fixed-line capacity.

But it said that with cable operator Virgin Media starting to provide wholesale backhaul in competition with C&W Worldwide and BT, the opportunity to get more competitive rates was decreasing not increasing.

Telefonica, the owner of Britain’s O2 network, could also be interested, analyst Robin Bienenstock said, but he noted the Spanish group was more focused on asset sales.

And France Télécom and Deutsche Telekom, the owners of the other large mobile network, Everything Everywhere, were more likely to float the joint venture than do more deals, he said.

“In our view private equity would also be the rational buyers of this asset,” he said. The Sunday Times said Apax was running a rule over the business.

A banker who advises European telecom companies said that unlike private equity firms, Vodafone would be able to generate synergies by moving some of its excess traffic onto C&W’s network, which would give it scope for a higher bid.

“I find it hard to imagine that private equity would be able to outbid Vodafone if it wants this asset,” the banker said.

Analyst Guy Peddy at MacQuarie said the operational issues that needed fixing in Cable & Wireless Worldwide made a bid a possibility rather than a probability.

“The due diligence that Vodafone would have to do would have to make them comfortable there is an underlying sustainable business,” he said. “It’s not necessarily an easy sell to its investors.”

C&W Worldwide has stumbled from one crisis to another since it split from the Caribbean-focused international half of the former Cable & Wireless.

It announced writedowns of £624-million in November, and John Pluthero, who notably received bonuses of more than £10-million from his time at Cable & Wireless, left after less than six months in the job.

Ex-Vodafone executive Gavin Darby was brought on board to lead a turnaround.

Mr. Peddy said he had a 40 pence price target on Cable & Wireless Worldwide, giving a market cap of £1.1-billion, and he said investors should not sell out below that level.

Reuters reported last year that Cable & Wireless Worldwide could make a tempting target for mobile phone operators such as Vodafone or O2.

Vodafone, which is flush with the proceeds of asset sales in France, Poland, Japan and China, said any bid would be in cash.

Lombard
Last updated: February 13, 2012 10:41 pm
Vodafone goes bottom-fishing

By Jonathan Guthrie



Bottom-fishers pursue some ugly critters. Vodafone is jigging its lure over the nose of Cable & Wireless Worldwide, misbegotten offspring of the demerger of Cable & Wireless in 2010. Like the benthic monkfish, whose face even its mother does not love, C&W Worldwide has long been judged more saleable in pieces than whole. Vodafone may do the necessary filleting, if it can haul C&W Worldwide aboard through a cheap cash takeover.

C&WW would be a tiddling acquisition for Vodafone, even after a 44.5 per cent jump in the shares to 28.5p on Monday increased the market value to £783m. The company’s assets include a bunch of subsea cables, some tax assets, data centres and a British bulk telecoms network. Of these, the big mobile phone company is most likely to be interested in the latter. Demand on mobile network capacity from i-gizmos exposes operators to cost pressures when they route data through BT’s cables. Vodafone could alleviate these by buying its own UK plumbing, while taking one-off gains from tax losses and the sale of the seabed pipes.

C&WW’s shares fell about 75 per cent from demerger to the last undisturbed price, reflecting a slew of profits warnings. Chairman John Pluthero and chief executive Jim Marsh, tarnished in investors’ eyes by a pay row, were resistant to a break-up. They have now been replaced.

How cheaply could Vodafone, or a rival bidder such as Apax, do a deal? A sum of the parts valuation of £2.5bn floated by one brokerage in December looks toppy. Another intermediary suggests a transaction should be do-able at 55p a share, implying an enterprise value of £1.7bn. The consequent takeout ratio would be 4.4 times forward earnings, just below the mid-cap average. But numbers may need trimming if C&WW issues a weak trading statement on Thursday.