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.

"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.

What's your take on this skinny? VOD look the most likely as the tax write off will not apply to TATA. However TATA is probably looking for a cheap way into the european telecoms market, which might be why they are interested, though, in that case VOD might be even more interested to keep them out. Of course, both of them might say no and walk!

Harry - I'm still long - although could have probably churned them over the last couple of weeks.

Interesting to see the VOD news this morning. Also the above Peston penned article is quiet interesting Vis-à-vis the tax angle.

Tata Communications secures funding for C&W bid

(Reuters) - Tata Communications Ltd (TATA.NS) has secured bank financing ahead of an April 19 deadline to decide whether to make a bid for London-listed Cable & Wireless Worldwide (CWP.L), Thomson Reuters publication Basis Point reported on Wednesday.

Tata Communications Ltd.

Announcement in relation to Cable&Wireless Worldwide plc

In response to press speculation, Tata Communications Ltd. ("TCL") announced on 1 March 2012 that as part of its ongoing review of potential acquisition opportunities, TCL was evaluating a possible cash offer for Cable&Wireless Worldwide plc ("CWW"). TCL today confirms that it has been unable to reach agreement with CWW on an offer price and therefore confirms that it does not intend to make an offer for CWW.

Announcement in response to statement from Tata Communications Ltd.

The Board of Cable&Wireless Worldwide plc ("CWW") notes the announcement today by Tata Communications Ltd. ("TCL") stating that it does not intend to make an offer for CWW.

Further to the announcement on 29 March 2012, CWW confirms that discussions with Vodafone Group plc ("Vodafone") are ongoing. In accordance with Rule 2.6(a) of the Code, Vodafone must, by a deadline of not later than 5.00 p.m. on 19 April 2012, 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 for CWW, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

There can be no certainty that any offer will be made, nor as to the terms of any offer.

Harry does that mean TATA realise they don't have the firepower to outbid VOD.

No, I think it's as I said in post #182. CW's debt is not of any interest to them, whereas VOD can write the debt off against profits from their other UK operations. Life seems to be about tax avoidance atm to many Co's, but I suppose that's business!
Skinny, you might want to review your 'long' stance after that news.

Hmmmm - that may it explain the lack lustre performance of the share price over the last couple of days.

I've had a nagging doubt that it may have been too big a financial mouthful for TATA.

Reuters take :-

Tata bows out of Cable & Wireless bid race

Worth buying now? Of course there is a risk VOD may walk.

Harry - who knows - as I posted in 183, I could have played this a lot better. I'm still well in profit - albeit - a smaller one!

Pure luck that I sold two days ago in order to buy into the AFR rally. But if we think that CW. is worth 40p, then sub 30p has to be a bargain.
Today is the last day for VOD to put up or shut up I believe?