Tata Comm eyes Cable & Wireless acquisition

Tata Comm eyes Cable & Wireless acquisition

Summary: Indian conglomerate in "very preliminary stage" of considering cash offer for Cable & Wireless Worldwide, which also has caught the attention of Vodafone.

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Tata Communications is considering plans to acquire U.K.-headquartered telecoms company, Cable & Wireless Worldwide, but discussions are still "preliminary", according to statements issued by both companies. British mobile operator Vodafone had previously announced its interest in Cable & Wireless.

In a statement late-Thursday, the Indian conglomerate's communications arm confirmed rumors that it might make a bid for Cable & Wireless as part of its "ongoing review of potential acquisition opportunities". However, it stressed that the considerations currently are at "a very preliminary stage".

In a separate statement, Cable & Wireless also acknowledged that Tata Communications was evaluating a possible cash offer. "The Board will make any further announcement as may be required in due course," it said.

Should it decide to go ahead with its bid for Cable & Wireless, Tata Communications will be competing with Vodafone which had announced on Feb. 13 that it was considering a potential cash offer for the telecoms company. Vodafone has until Mar. 12 to confirm its intention to make an offer.

A Press Association report posted Friday on the London Stock Exchange Web site priced the possible takeover at 1 billion pounds (US$1.6 billion). Tata Communications has until Mar. 29 to confirm its offer, the report noted.

Topics: Networking, Data Management, Legal, IT Employment

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

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