M&A Journal: Vodafone Gets Time, Showdown With Tata over C&W

March 13th, 2012 by · 2 Comments

UK regulators gave Vodafone Group (NYSE:VOD, news, filings) more time to decide whether to bid for Cable & Wireless Worldwide yesterday, pushing back its deadline until March 29. That’s the same day Tata is due to make its own decision on a bid, and thus we are set up for a bit of a showdown.

It seems likely that Vodafone is preparing a bid, else they wouldn’t need the extension beyond the original four weeks. But they don’t want to give Tata a target to shoot at with plenty of time to take aim. Now both will probably make their bids, if any, at the last minute.  Tata is out there raising money, and hence they do appear to be serious.  Cable & Wireless split itself into pieces a few years back in an effort to regain its footing, but has continued to find the going difficult.

The question is, who wants it more? Both Vodafone and Tata have valid strategic reasons why a merger would work, but from different ends of the spectrum. Vodafone would put the UK fiber to good use, complementing the rest of their infrastructure. Tata on the other hand is surely most interested in the international business. Both have the resources for a bid, and both seem to be prepared to take on the integration.

But perhaps the best solution here from C&W Worldwide’s perspective would be to sell to both buyers, splitting the international business from the UK fiber network and enterprise customer base. That might bring the most dollars.

Another bidder could still emerge, but the list of likely candidates doesn’t seem to be getting any longer. The only one I can really make a case for that competes with those of Vodafone and Tata is still Level 3, which would actually see value both sides of C&W’s business. But they are of course currently occupied with the Global Crossing integration, and hence I doubt they will show up. For now it’s a two-company race.

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Categories: Internet Backbones · Mergers and Acquisitions

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2 Comments So Far

  • schmuckinsurance says:

    I too wouldn’t be surprised by a L3 bid here but agree with your sentiment that the L3 bid likely isn’t high enough to win it.

  • CarlK says:

    See what I mean Schmuck, you offer absolute zero value and zero thinking skills to this forum except for random opinions excluding any thoughtful analysis whatsoever.

    This is what I call a “Can’t Do” post to create a negative image on the minds of all and any negotiators or players in the back grounds of deals which may or may not be “HOT.” You just BASHED my investment position.

    Let’s explore this further while we have the chance so there is no misunderstanding about what this “market” is all about, especially the criminal underlying forces moving it daily, weekly, yearly and into perpetuity unless the authorities wrest control of a game gone foul.

    For starters, the game is rigged, and “insiders” or “industry vets” who permeate places like this but are unwilling to divulge by “registering” their names, for fear of legal liability, as well as repercussions of any kind including tainting their reputations when a call or prediction goes the wrong way are just a microcosm of the entire problem.

    For you see, these PIGS know they need to talk in order to move stocks and herds their way, so rather than forcing them to shut the hell up if they don’t attach their John Hancock to their writings by registering in order to be sourced later, it is tolerated under a cloak of secrecy never to be revealed to the public rubes otherwise.

    Here’s an interesting example of the utter criminality behind it all, with a different slant or name(s) being attached to the LIBEL and SLANDER which persists unabated. Yes, Dr. Patrick Byrne(DPB) is someone who I believe is a patriot, one serving all investor citizens across the globe well, so let my bias be known on the front end after years of doing my best in concert with this coalition working with DPB behind the scenes, to fight the forces against the public’s best interest.

    This guy is a lot like you SCHMUCK, but at least he has the guts to put his name out there including the valueless pit, void of all sensible analysis except to disparage a company further in “pile on” fashion with only one valuable point, which I’ll address afterwards tied to the CF investing and speculating almost always is.

    Obviously, my research surrounding the history of this vicious man along with his ilk, makes me despise him, but that doesn’t matter, because that’s just an opinion until the authorities finally catch these miscreants red handed, which they will one day even while they’re living hell, you can be sure.

    What a hatchet job as these natives keep beating their negative drums contrary to “thinking before they act” and weighing where the business is going forward. Unfortunately, however, their goal is like yours, SCHMUCK, and getting to ABSOLUTE ZERO so they won’t pay “TAXES” if they are able to KILL this company.

    They have unfettered access to the PUBLIC WIRES to spread their fear, uncertainty and doubt, however. Possibly even encouraging institutions to join in their desired end game.


    The only wise advise this MISCREANT provides which I agree with, and recommend whenever I can when speaking about “the stock market,” investing, and the whole LIARS POKER SCHEME, is that of purchasing a low cost index fund like Vanguard to participate in a basket of corporate earnings streams to grow one’s capital with macro business prospects on the horizon, and avoid individual security risks which are best left up to “professionals” like the two this miscreant trashes in this article, or like THE ONE you have given this board mixed messages about who counsels a 20 punch card for a life of investing. None of them including WEB are absolutely perfect, by they are best of breed for assessing the odds for others to benefit by on a cumulative basis.

    If there is one other caveat I always add to purchasing an index fund, it’s to only buy and not dollar cost deWorsify, during periods of extreme pessimism, like 08-09, for example. This requires great discipline, but will best serve us rubes who are constantly being led to lose their money into the hands of criminals.

    Of course, if the Wall Street criminals take control of the supply/demand factors by turning the models upside down on its head “illegally” during the process, insiders and other more credible players, can talk until they are blue in the face about “price targets,” value. or this and that, and it won’t matter a hill of beans.

    Get the ILLEGAL SHORTEES and do NOT relent until they’re all incarcerated to hard labor for what they’re doing, and have done to the financial markets including but not limited to violating PUBLIC GOOD WILL and TRUST. Don’t be a SCHMUCK anymore, SCHMUCK! IMO, of course.

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