Vodafone has made an offer for Cable & Wireless Worldwide (CWW) to the tune of £1.04bn. CWW directors have agreed to recommend the deal to shareholders

Under the terms of the offer, CWW shareholders will be entitled to receive 38 pence in cash for each CWW Share held, around double what they could expect to get on the open market.

In a statement, Vittorio Colao, CEO of Vodafone Group, said: “We are pleased to reach agreement with the Board of Cable & Wireless Worldwide, who unanimously recommend our offer.

"The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.

"We look forward to working with the management and employees of Cable & Wireless Worldwide to combine our expertise for the benefit of our customers and shareholders.”

UBS is acting as sole financial adviser to Vodafone and Vodafone Group. Barclays and Rothschild are acting as joint financial advisers to CWW.