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.

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?

Ostensibly its worth much more - but in this case, its only what someone (VOD) is prepared to pay. If it comes to the long haul - then so be it.

press speculation dividend will be reduced by 50%

There is no dividend!

Actually there was in 2011. June & November ex-divi. (3.75p total)

From the report 15th November 2011.

Half Yearly Report.

� Interim dividend of 0.75 pence per share to be paid in January 2012 at a cost of �20 million. Future dividends suspended to improve balance sheet strength

skin read todays FT

Summary note from Bernsteins:
"Last night Tata signalled its intention to withdraw from the bidding process for Cable & Wireless Worldwide, leaving Vodafone as the sole potential bidder. The deadline for submitting an official offer is 5pm today. As we wrote on 28 March, we think that an 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. Tata had reportedly agreed financing of £1.3bn for the deal (implying a share price of 45-50 GBp). We argued that Vodafone could justify a higher bid, in part because we think they are not interested in the undersea cables for which there is clearly interest (not least from Tata). It could well be that Tata has pulled out in the hope it can secure those assets from a different owner (Vodafone?)."

That in essence is my thinking - it makes sense.

I'm staying out now until this is resolved. My feeling is that VOD will walk, but ............

Off to the gym - 45p or 18p when I return!

There was money to be made here today - if you had the balls!

5PM deadline rapidly approaching, place your bets!

Hmmmm

Vodafone will not walk away from CWW - sources

(Reuters) - Vodafone will not walk away from bidding for Britain's Cable & Wireless Worldwide (CWP.L) on Thursday, when a deadline for bids is due to expire, two sources familiar with the situation told Reuters, lifting CWW's shares.