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.

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?

RNS Number : 3113A

Cable & Wireless Worldwide PLC

28 March 2012

29 MARCH 2012

Cable & Wireless Worldwide confirms extension of Takeover Code deadline

In accordance with Rule 2.6(a) of the Takeover Code, Vodafone Group plc ("Vodafone") and Tata Communications Ltd ("TCL") were required to, by not later than 5.00 p.m. on 29 March 2012, either announce a firm intention to make an offer for Cable & Wireless Worldwide plc ("CWW" or the "Company") in accordance with Rule 2.7 of the Takeover Code or announce that they did not intend to make an offer.

In accordance with Rule 2.6(c) of the Takeover Code, at the request of the Company, the Panel on Takeovers and Mergers has consented to an extension of the relevant deadlines until 5.00 p.m. on 19 April 2012 to enable each of Vodafone and TCL to establish whether or not their preliminary discussions with CWW might result in a formal offer for the Company which the Board of Cable&Wireless Worldwide would be willing to recommend. There can be no certainty that any offer will be made, nor as to the terms of any offer.

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

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.

- ends -

At least they are still interested then. Think I will continue to hold.

Six days to go and a little uplift in the sp. Very surprised that there hasn't been more speculation concerning this stock. Slightly worryingly quiet!

Harry not really probably VOD and TATA waiting for the other to show their hand.

from FT yesterday:
"Newswire report yesterday that Tata Communications’ lending banks are still working on the terms of a reported $2bn 30-month bridge loan to finance its bid for Cable & Wireless Worldwide [BUY, FV 40.00p]. Previous media reports suggested the loan was expected to be finalised this week but the banks are apparently confident the funding will be in place ahead of next Thursday’s (19 April) bid deadline (sources: “two sources familiar with the situation” according to dealReporter/Bloomberg). Perhaps more significantly, the news suggests that although TCOM has been asked to explore selling some non-core assets to appease banks for future financing, given the scale of the Tata Group [not rated], underwriters were comfortable with the financing and were not concerned with TCOM’s debt levels – meaning the full amount of the loan could be used to finance a bid for CWW rather than allocating a portion to paying down existing debt. We note this speculation has yet to be substantiated by TCOM yet.

The $2bn figure implies an EV for CWW of £1.26bn or an equity value of £1.09bn on our March 2012 net debt forecast (i.e. about 41p per share). We recently upgraded CWW to BUY, selecting it as a Silver Bullet idea for 2Q 2012 as we believe it is increasingly likely Vodafone or TCOM or both will bid for CWW at a level significantly above the current share price. We believe initial bids may be higher than 40p, but we reflect the risk that both parties might walk away from a deal in this fair value by applying a 20% discount. A bidding war may emerge but we still believe Vodafone could justify a higher premium than Tata because of the combination of the available tax assets and synergies with its existing UK operation.

Cable & Wireless Worldwide – TATA bid expected by next Thursday."

Vodafone, C&WW, and a £5bn tax question

A behind-the-scenes battle to acquire Cable & Wireless Worldwide, owner of one of the UK's largest fibre-optic cable networks, is coming to a head.

By teatime on Thursday at the latest, and probably earlier, we should learn whether the board of C&WW, has chosen Vodafone or India's Tata Communications as its new owner.