India's Tata Communications Limited is reportedly considering plans to raise US$2 billion in a term loan to finance its potential bid for U.K.-based telecoms company, Cable & Wireless Worldwide.
Sources also told Reuters that Standard Chartered bank, Tata Comms' mergers and acquisitions (M&A) advisor, was set to take the lead role in raising the loan.
The communications arm of Indian conglomerate, Tata Group, last week announced it might make a bid for Cable & Wireless as part of an "ongoing review of potential acquisition opportunities". However, it added that considerations were at a "very preliminary stage".
An earlier report by The Economic Times last Friday said plans for the bid, if it materializes, could be opposed by the Indian government which currently holds a 26 percent stake in Tata Communications.
It also would mark a return to overseas M&A by the Tata Group after nearly three years, Reuters noted.
U.K. mobile giant Vodafone, which had also shown interest in bidding for Cable & Wireless, has until Mar. 12 to confirm its intentions. Tata Communication has until Mar. 29 to do the same.