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.

Surprise surprise - another extension!
http://http://www.investegate.co.uk/Article.aspx?id=201204191635007088B

Looks like they are interested then, so might be worth getting back in again.

Note from Merrill Lynch today:
"Tata Communications’ decision to walk away from CWW ahead of the expiry of the offer period changes the dynamics of the offer situation dramatically in Vodafone’s favour in our view. For a number of reasons we believe Vodafone (if it bids at all) is likely to bid lower than the market is implying.
Tata’s press release said it was “unable to reach an agreement with CWW on an offer price”. Given that it withdrew ahead of the expiry of the offer period therefore suggests to us that there was a considerable gap between expectations. However the early withdrawal has left Vodafone in a commanding position in our view. It appears to be the sole bidder, and CWW shareholders, in the absence of a Vodafone bid, are facing the unpalatable prospect of CWW reverting to fundamentals (ie deteriorating trends, capital constraints and anaemic cashflow generation).
If you were Vodafone, would you bid high, or bid low (or not bid)? Prior to Vodafone’s initial interest, CWW was trading at 19.75p. We believe given the poor fundamental trends, that if Vodafone walks away the stock will trade down towards c.22p (reflecting some residual option value on top of the ex ante price). Furthermore, if we assume a 70% chance of a bid, that would imply (given the current stock price of 34p) an offer price of 39p (ie 70%x39p+30%x22p=34p). As we discussed in our earlier note (CWW, 13 Feb 2012), Vodafone could benefit from a combination of revenue synergies (cross selling products), cost synergies (esp. backhaul) and tax assets which together could be worth £1bn. While this is appealing, one needs to remember that CEO Colao’s is likely to be unwilling to squander his hard-won reputation in the market over the last 3 years for caution in M&A (a distinct break in Vodafone’s heritage). However, the series of offer extensions suggests to us that VOD is likely to bid, but we think it will bid low."

Hmmmm

Vodafone 11th-hour bid for C&WW set to succeed

Yes, I saw that article. Bought back in on friday at 31.8p
Hoping for 40p+!

Fingers are well and truly crossed for this one. Will be one of my biggest profits to-date, all on a gamble.

We'll see.

RECOMMENDED CASH OFFER




· Under the terms of the Offer, CWW Shareholders will be entitled to receive 38 pence in cash for each CWW Share held, representing a premium of approximately:

- 92 per cent. to the Closing Price of 19.8 pence per CWW Share on 10 February 2012 (being the last Business Day prior to the commencement of the Offer Period); and

- 107 per cent. to the average Closing Price of 18.4 pence per CWW Share for the three months ended 10 February 2012.

· The Offer values the entire issued ordinary share capital of CWW at approximately £1,044 million. The Offer price of 38 pence per CWW Share is final and will not be increased. Vodafone reserves its right to increase the Offer if a third party announces a possible offer or offer for CWW.

That'll do me! Quick in & out. :o)

And, I'm out too.
Thank you and good night ;-)

You have to smile.

Espirito Santo Execution Noble reiterates its Buy TP 40p

HB Markets reiterates its Sell.

likely t/o target .... break through 35 with impetus would give reason to buy in any case

Not sure. Sunday Telegraph is highlighting the problems that confront VOD and this certainly isn't a 'done deal'. "Vodafone could be forced to share Cable & Wireless Worldwide (C&WW) with the beleaguered telecoms company’s biggest shareholder, Orbis, in the face of considerable shareholder unrest over its £1bn bid to buy the company outright."
Whole thing seems to be taking an age to sort out.

Final Results.

· Trading performance in line with our expectations. Trading cash flow of £99m (2010/11: £116m)
· First phase of performance improvement plan implemented including refinancing, new operating model and additional hosting capacity
· Market conditions expected to remain challenging during 2012/13
· On 23 April the Board recommended a 38p per share cash offer for the Company from Vodafone

Financial highlights

· Trading cash inflow1 £99 million (2010/11: £116 million)
· EBITDA2 £378 million (2010/11: £442 million)
· Gross margin £1,020 million (2010/11: £1,065 million), with hosting and applications now accounting for 20% of gross margin (2010/11: 18%)
· Exceptional items - goodwill impairment (£436 million), deferred tax asset write down (£146 million), the write off of obsolete assets (£42 million) and the gain on disposal of a group subsidiary (£18 million) totalling £606 million

Trading highlights

· Progress on cost reduction, new operating model in implementation, capital expenditure programme reprioritised to create headroom for investment
· Extra 35% of data centre capacity commissioned, with 4,000 sqft added in the second half of the year
· UK enterprise - contract wins during the year to restart hosting growth utilising this new capacity
· Trusted partner for central government with 15% gross margin growth across the public sector
· New £260 million revolving credit facility agreed with final maturity date of 30 June 20153
· Global network expanded with completion of Europe Indian Gateway (EIG) cable system

Summary and outlook

In the final quarter of 2011/12, we continued to make progress in the execution of the performance improvement plan announced in February. A strong focus on cash has led to improved utilisation of capital expenditure and positive working capital in the second half of the year. The capital expenditure programme has been reprioritised to create headroom for the investments in improved execution, simplification and cash generation outlined in February. Several cost reduction programmes have been commenced delivering benefits in the monthly cost run rate going into 2012/13.The refocusing of the business towards a new target operating model has commenced. The refinancing of our revolving credit facility was completed in February with a final maturity date of 30 June 2015.3

During the year we have continued to win new client mandates and have made the planned progress in building hosting capacity to enable a further increase in the growth of the hosting business in the future. However, trading conditions in 2011/12 continued to be very difficult with enterprise customers continuing to seek keen prices in traditional voice and data services.
Trading conditions in 2012/13 are expected to remain challenging. Whilst the medium term plan assumes market outperformance, we do not expect to outperform market growth assumptions in 2012/13. Initiatives have been identified to mitigate the majority of the increased inflationary cost pressures on our operating cost base. As part of our strategic plan further capital investment will be required over the next few years to reduce complexity, cost and enable growth in the medium-term. The timing of this investment will be managed to keep total capital expenditure in line with recent trends.

On 23 April 2012, the Board recommended a cash offer for the company from Vodafone of 38p per share. The Board had to weigh up the transformative nature of the long term plan and potential upside it could deliver against the risks associated with the plan and the timescale required. Given this the Board believes the Vodafone offer represents an excellent opportunity for shareholders to realise an attractive valuation in cash today.

Just had my voting info - now where should I put a cross!

on your left shoulder ..... you should just about get to golgotha in time

.

rubbish - in fact have just ordered a very smart large Stanley hammer with an ash handle (less vibration) ..... anyway, if i hear skinny has dropped that cross once more, he'll be out of the procession; he makes it untidy

..Cable & Wireless Worldwide future to be decided

By Graham Ruddick | Telegraph – 57 minutes ago


......
The future of Cable & Wireless Worldwide is set to be decided on Monday when shareholders vote on a £1bn takeover bid by Vodafone (LSE: VOD.L - news) .

More than 75pc of CWW investors need to vote in favour of the Vodafone deal at a special meeting in the City for it to be approved.

The telecoms giant has threatened to walk away from CWW unless it wins full support for its plans.

Vodafone has proposed to take control of CWW through a scheme of arrangement that would allow it to secure full ownership of the company and merge it with its own networks.

However, Canadian investment group Orbis (Xetra: 522877 - news) , which owns 19pc of CWW, has warned it could vote against the proposal.

Orbis, which is CWW’s biggest shareholder, is pressing for Vodafone to increase its offer beyond 38p per share. The investor has said it is happy to retain its stake in CWW even if Vodafone buys the remaining shares.

If Vodafone does not win the vote, the FTSE 100 (Euronext: VFTSE.NX - news) company could propose an alternative type of bid such as a tender offer.

However, in a statement after stock markets closed on Friday, the company said “it will not switch to a contractual takeover offer” and the takeover offer for CWW will “lapse” if shareholders reject the scheme of arrangement.

Shareholder representative groups have backed Vodafone’s proposals, boosting the company’s hopes of winning approval.

Institutional Shareholder Services (ISS) said earlier this month: “Based on reasonable sale process with two bidders, adequate valuation and the risk that investors face in going through a difficult turnaround, we recommend shareholders support the Vodafone offer.”

..