Looks like the purchase of cw by Vodafone Group (NYSE:VOD, news, filings) may have overcome its biggest hurdle. Orbis, which is C&WW’s largest shareholder, is apparently now on board with the deal according to reports.
Vodafone agreed to purchase C&WW for 38p per share, or about £1.044B, back in late April, after out-bidding Tata Communications (news, filings) during a two month process. Vodafone hoped to leverage C&WW’s UK fiber to bolster its wireless backhaul capabilities while expanding its international corporate business.
Just a few weeks later, however, Orbis cast a pall over the deal by announcing its opposition, calling the price too low. With 19.06% of the company’s shares, Orbis was in a real position to make trouble. However, the lack of available alternatives surely became obvious. So with Orbis now backing the deal, it seems quite likely that the two companies will manage to consummate this deal.
Meanwhile, other assets across Europe are starting to draw attention, with billionaire Carlos Slim making some waves in both the Netherlands and Austria already. Valuations for telecom and internet infrastructure assets have been depressed across Europe for some time, and it is looking like the long expected wave of consolidation is starting to form.
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