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.

Could be Tata :-)

or maybe a virgin!

well something going on takeover panel give Vodaphone bid extension time to 29th march same as for Tata. sp moving up nicely 50p possible here.

looks like a case of who will "blink" first.... Tata or Vodaphone?

It worth over 70p anyway, regardless of the results.
Some even value its assets at 150p a share.

Seems to be coming off a bit now.

sp up 5% so far today.

sp finished up 6% more to come we think.

At the closing price, its a double bagger + for me. I was tempted to take the money and run - lets hope I was right to stay.

skin us too have stayed in looking fo 50p+

Vodafone's C&W Worldwide bid deadline extended

(Reuters) - Vodafone must decide whether to bid for Britain's Cable & Wireless Worldwide by 29 March after regulator the Takeover Panel extended the deadline on Friday to the same date set for potential rival bidder Tata Communications.

The takeover panel had set a "put up or shut up" deadline for March 12 after Vodafone said in February it was in the early stage of considering whether to make a cash bid for Cable & Wireless Worldwide (C&WW).

It granted the extension on Friday at the request of C&WW, the corporate telecoms services group said.


Vodafone's declared interest in C&WW, which has issued a string of profit warnings since it split from Cable & Wireless Comms two years ago, prompted India's Tata Communications to say on March 1 that it too was looking at making a bid.

Shares in C&WW closed up 5.9 percent at 36.2 pence, valuing the group at nearly 1 billion pounds ($1.6 billion).

Vodafone closed down 0.9 percent at 169 pence. Tata Communications last traded up 2.5 percent at 235.60 rupees.

Analyst Nick Brown at Espirito Santo Investment Bank said the extension meant Vodafone was working quite seriously on whether to make a formal bid or not.

"Their intentions of having a look at the business were made public perhaps before they would have liked, so it makes sense they might want a bit more time because it's not just the Cable & Wireless shareholders they have to convince; they've got to present a robust case to Vodafone shareholders as well," he said.

"There's been a fair degree of scepticism about the deal; as we've got closer to the deadline it became more apparent that Vodafone was serious about potentially making a bid.

"Now they are requesting more time it is probably more likely than not they are going to come out with something formal."

Standard Chartered is the financial adviser to Tata Communications, the company said in the filing, with Rothschild and Barclays Capital advising C&W Worldwide.

current sp gives a market value quite close to their net asset value.

What happens if VOD say no? Back to 15p?

Possibly Harry - but the reason I didn't sell on Friday, is that I (hope) assume that the fact that VOD have asked for an extension, means that a bid is fairly certain.

sp still rising up 3% so far today

PE players to help fund Tata Comm's Cable & Wireless bid

Tata Group's bid for the international assets of Cable & Wireless, one of the largest telecom players in the UK, could cost over USD 1.2 billion, and CNBC-TV18 learns that Tata Communications may be partnering with private equity players for the financial bid.

Krithika Saxena reports that Tata Communication at this point in time doesn't really have the financial muscle for this bid, which is why they are trying to bring in private equity players similar to several other deals like Patni, IGATE and Hero Honda.

March 29 is the final date for the bids, and as we know Vodafone is also likely to be a strong contender over here, so we need to wait and watch out for that.

only 2 weeks to bid deadline on 29th march quite likely some news next week.

halifax - if you want some amusement - have a look at the "theorists" on the CW. & MCHL threads over the road :-)

From FT sector watcher today (though waiting for VOD decision on VZN first):
"Mumbai – India’s Tata Communications Ltd. has decided to make a formal cash offer to buy the U.K.’s Cable & Wireless Worldwide PLC, a person familiar with the development said Tuesday.

The Tata Group company is likely to raise short-term debt of upto $2 billion to fund the potential acquisition, the person, who asked not to be named, said.

The person added that while the company has received commitments from banks for raising the funds, final documents haven’t been signed as yet. Also, it isn’t clear in what form the debt will be raised."

A bit more here - Tata Communications to make formal cash offer for C&W Worldwide