India’s Tata Group has confirmed it is entering a bidding war for Cable & Wireless Worldwide, against Vodafone, which has already expressed interest in the faltering comms company.
Tata Communications, which is the internet data services division of Tata Group, said "that as part of its ongoing review of potential acquisition opportunities, it is evaluating a possible cash offer" for the company.
It added that “considerations are at a very preliminary stage". News of the move sent C&W Worldwide shares up 17 percent on London trading, equating to a company market value of around £880 million at the time.
In 2010, the Cable & Wireless Group demerged into two units: C&WW, which serves businesses with telecoms, hosting, cloud and data services, and Cable & Wireless, which serves consumers. The demerger has been problematic, with C&WW - the business unit concerned here - issuing three profit warnings and seeing its share price plummet by 75 percent.
Earlier this month Vodafone confirmed speculation that it was in the very early stages of evaluating a potential bid for C&W Worldwide. Vodafone's potential acquisition would help it boost its fixed enterprise offerings, while also helping it cope with expanding data volume in mobile networks, according to analysts.