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.

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

And here - Tata Comms yet to decide on offer for C&W Worldwide: source

sp up 8% so far today , bid news must be coming soon!

skinny - you just couldn't make it up. Verbal diarrhoea. Sheer drivel.

Tata Communications finalising $2billion loan to make bid for Cable and Wireless.

Recent comment here.


Kumar declined to comment on the prospects of Tata buying Cable & Wireless Worldwide (CWW).

looks like bids may have to be near 50p to succeed.

Not so sure - I hope you are right, but I think nearer 40p will do it now.

VOD just touched its day high.

Assuming halifax is correct with his date of the 29th as a deadline, this week should see a conclusion to the speculation. Fingers crossed!

Harry suggestion from brokers both Vodafone and Tata are seeking an extension to the put up or shut up bid deadline.

looks like the possible bids are going down to the wire, no announcement of any extension to tomorrows deadline yet....... place your bets!

Note from Bernstein’s Robin Bienenstock:
"The acquisition of CWW could be accretive for Vodafone, reducing backhaul costs and offering a larger platform from which to grow their Enterprise business; it is however, by no means necessary. As a reminder we think that there is logic to Vodafone bidding for these assets in what could be a margin accretive deal. However, we think that it is by no means certain, nor necessary, for the UK business to do so. We think that there are alternatives to acquisition, but that acquisition could (1) support rapid growth of Vodafone’s Enterprise business; (2) speed up LTE investments and (3) put Vodafone’s network a lasting step ahead of peers while improving margins. M&A is not without reputational risk for Vodafone, but after weeks of meetings with investors we think that this deal would not jeopardise Vodafone’s hard earned reputation for discipline in this regard as long as it were well explained. We do not think that this purchase signals a new round of M&A from Vodafone, although we do believe that it is in Vodafone’s interest to enter into Italian Metroweb’s equity (preferably directly, but failing that through Fastweb). Please see the piece Round Two of the Value Chain Wars or a Further Step Down in Euro Telco Valuations? for a greater explanation of Vodafone’s possible pursuit of these two assets.
Financial synergies could be substantial. Cable and Wireless has substantial tax losses which we believe could be used by Vodafone to offset tax in both its UK and international businesses. However investors should expect Vodafone, given the current tax environment, to talk down the value of the UK assets. These tax losses amount to £5.2bn and should be allowable against tax in the UK for telecommunications profits, resulting in a potential £1.2bn tax saving over a number of years. International tax losses of some £10bn are also likely to be valuable to Vodafone, while the company has unused capital allowances totalling £3.4bn which may be able to be used to defer tax on future capex. CWW also has extensive global communications links, including potentially valuable undersea cables which, in our view, could be divested for £150m-£200m."

"Accretive" - excellent word.

Hmmm.... I suppose a derivative of 'accretion'? Journalistic licence?