Cable Technology Feature Article
Vodafone Rears Head Towards Cable & Wireless Worldwide
By Miguel Leiva-Gomez, TMCnet Contributor
Vodafone (News - Alert) Group PLC just announced that it's got its eyes on Cable & Wireless (News - Alert) Worldwide PLC, an acquisition that could make its shares soar into the stratosphere to the tune of a 27 percent increase.
The acquisition might strike you as insignificant, until you have a look at what Cable & Wireless Worldwide is known for: Establishing the imperial British telegraph system back in 1901. Since then, Cable & Wireless has been a global telecom company providing telephony services to giant corporations, national governments, and even other telecom companies.
It's grown to embrace VoIP, and other data protocols to extend new high-tech offers to corporations all over the UK, Asia, India, the Middle East, Africa, Europe, and North America. Although offering cable TV for a short period before selling the department, it still held a key role in shaping telecommunications throughout the world, and now Vodafone's thinking to absorb the company.
Vodafone said, in a statement, that it is, “in the very early stages of evaluating the merits of a potential offer for CWW.” The company added that offers would be in cash, yet there's nothing concrete saying that Vodafone will actually acquire CWW.
The Sunday Times says that Vodafone is thinking of offering 700 million pounds, or $1.1 billion, although CWW's market value is pegged at 550 million pounds as of Friday. The other shark in the water, aside from Vodafone, is Apax Partners LLP, which suggests that both companies might be bidding against one another.
Vodafone is in a rather tight position, with a month left until it commits to its intention to take CWW. If it doesn't respond, the company risks being barred from bidding for another six months, putting Apax at an advantage.
Miguel Leiva-Gomez is a professional writer with experience in computer sciences, technology, and gadgets. He has written for multiple technology and travel outlets and owns his own tech blog called The Tech Guy, where he writes educational, informative, and sometimes comedic articles for an audience that is less versed in technology.
Edited by Jennifer Russell