Vodafone has agreed to buy UK-based wire line service provider, Cable & Wireless Worldwide in a £1 billion deal, The deal had been subject to a Monday lunchtime deadline which had already been extended by the UK Takeover Panel form last Thursday. Vodafone is offering CWW shareholders 38 pence a share in cash, a 92% premium to the price before it declared its interest in February.
Last week, Tata Communications announced that it would not be pursuing a purchase of CW, leaving Vodafone as the sole remaining provider.
It is thought that CWW's fibre network can be used to relieve pressure on mobile networks and will increase capacity for Vodafone. CWW also has contracts to provide voice, data and hosting services to British government departments and major companies such as Tesco and United Utilities. Media reports suggest that Vodafone reportedly wants to break up CWW and sell off its undersea cables operations.
Vittorio Colao, Vodafone's chief executive, said: "The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."