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.

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.

Added a few more this afternoon on the fall back.

looks like i timed the top slice correct y'day, shame about the timing of my buyback today[@27.14p].That said, As long as the figures are ok on Thursday this should continue on upwards. a 40p a share deal would be nice but by no means a certainty.

DYOR and GLA

Alex

Are they reporting the results on this Thursday or next week?

Thursday 16th.

Interim Management Statement.

Interim Management Statement and Interim Business Review

16 February 2012

-- Full year 2011/12 outlook unchanged.
-- Focus on sustainable cash generation and returns from capital invested
-- Target to reduce business complexity, build internal capability and reduce cost
-- Building on the strength of client relationships in the UK and overseas
-- Planned increase in hosting capacity starting to come on stream

look as anticipated. didn't see anything too disastrous that should cause SP to drop dramatically, but that's no guarantee it won't. onwards and upwards.

Tata Communications shares gain amid CWW takeover report

MUMBAI: Shares of Tata Communications on Thursday soared by about four per cent in early morning trade amid reports that the company was looking to bid for acquiring UK-based telecom player Cable & Wireless Worldwide (CWW).

UPDATE 1-India's Tata Comm eyeing C&W Worldwide-report

MUMBAI, March 1 (Reuters) - India's Tata Communications Ltd is preparing to bid for Cable & Wireless Worldwide Plc, the Times of India reported on Thursday, in what would be the biggest British acquisition by an Indian firm since Tata Motors (BSE: TATAMOTORS.BO - news) bought Jaguar Land Rover.
The paper, citing sources directly briefed on the matter, said a bid could possibly be made in the next two weeks.

virgin mobile may join later.

Statement re. Press Comment

RNS

RNS Number : 4603Y
Tata Communications Limited
01 March 2012



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE

1 March 2012

Announcement in relation to press speculation

Tata Communications Ltd ("TCL") notes the press speculation in relation to Cable & Wireless Worldwide plc ("CWW") and confirms that as part of its ongoing review of potential acquisition opportunities, TCL is evaluating a possible cash offer for CWW. TCL would like to emphasise that considerations are at a very preliminary stage.

In accordance with Rule 2.6(a) of the Code, TCL is now required, by not later than 5.00 p.m. on 29 March 2012, to either announce a firm intention to make an offer for CWW in accordance with Rule 2.7 of the 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 Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

This is an announcement falling under Rule 2.4 of the Code and does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the Code.

Out of extended auction +15.4%

Indians have the habit of buying British companies with depressed share prices.

Corus was sold to TATA Steel when everyone knew the future could be bright. We paid over £3 a share for Corus, they bought it at penny prices. It worth around £7 now!!!

Jaguar Land Rover had the same story. Sold for nothing - £500 cash and the co was sold for £10 if memory serve me right. It made the higher profit ever last year under TATA management.

The new story is CW. Many of us paid over £1.70 for CW. and some others paid over £7 and still holding. We are now happy that TATA is going to buy it probably around 50p. They will sell the same shares around £2 in two years, all IMO.

Growth in internet is exponential and reality now, unlike internet hype years 2000, 2001. You should just look at Google, Apple, Facebook, etc. They all need internet connection all over the world. I think CW. worth over £1 even at this depressed market.