Last month Core Telecom brought you news that Vodafone had agreed a takeover deal of Cable and Wireless Worldwide worth over £1 billion. Since this announcement, the deal has stalled due the the fact that their largest share holder, Orbis rejected the offer as they feel it undervalued the company.
However, since then CWW have released another set of poor financial results and the board have voted unanimously to support Vodafone’s offer. This week all shareholders were again urged to accept the deal with Vodafone which remains on the table.
Orbis have quietly suggested that they may be prepared to remain a shareholder and co-own the company with Vodafone. The deal would see Vodafone pay 38p a share, but they may only be given the opportunity to acquire the 81% that Orbis does not own.
Talking with The Daily Telegraph, an Orbis spokesman stated: “We do not believe that CWW’s current performance is a good indicator of the inherent value of the company.”
Vodafone has been keen to increase the corporate side of it’s business for some time, and the fact that CWW provide services many large UK companies, including Tesco, has proved really attractive to Vodafone.
If completed the deal would make Vodafone the UK’s second biggest telecoms provider, behind BT.