logo
Share SHARE
FONT-SIZE Plus   Neg

Hedge Fund Elliott Buys Stake In C&W Worldwide Amid Bidding War: Report

Activist hedge fund Elliott Management has begun building a stake in Cable & Wireless Worldwide Plc (CW.L), which could influence the intensifying takeover battle between Vodafone Group plc (VOD,VOD.L) and India-based Tata Communications Ltd. (TCL) for the UK-based telecom company, Sunday Telegraph reported.

As per the report, New York-based Elliott's subsidiary Elliott Advisors owned derivatives equivalent to 0.62 percent of C&W Worldwide' shares as of Friday night.

Meanwhile, UBS, advising Vodafone, and Standard Chartered and Morgan Stanley for Tata reportedly getting ready to approach the Takeover Panel to extend the March 29 deadline to make an offer for C&W Worldwide. Under the 'put up or shut up' deadline, each must make an offer or walk away for the next six months.

The report noted that bankers on both sides are getting frustrated that the telecoms company led by chief executive Gavin Darby has not provided enough information to the would-be bidders.

It was on March 1 that Tata said it is evaluating a possible cash offer for C&W Worldwide, which has a market capitalization of about $1.3 billion. The move is said to be part of its ongoing review of potential acquisition opportunities. Vodafone also had confirmed in mid-February that it is in very early stages of evaluating the merits of a potential offer for C&W Worldwide.

C&W Worldwide specializes in providing communication networks and services, including managed voice, data and IP based services and applications to large corporates, governments, carrier customers and resellers. The company de-merged from Cable and Wireless plc in March 2010.

On the LSE, CW.L closed Friday's trading at 37.50 pence, down 0.48 pence or 1.26 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Lowe's Companies, Inc. (LOW) reported second-quarter net earnings of $1.4 billion or $1.68 per share compared to $1.2 billion or $1.31 per share, a year ago. The second quarter results included a $96 million gain from the sale of the company's interest in its Australian joint venture. Excluding the gain,... Wal-Mart has applied for a U.S. patent for a blimp-style floating warehouse that could make deliveries through drones, Bloomberg reported. The world's largest retailer expects the proposed floating warehouse could help it lower the costs of fulfilling online orders, especially the expensive last-mile deliveries.. Shares of WPP Group Plc. were losing around 11 percent in the early morning trading in London after the advertising giant reported Wednesday that it has revised down fiscal 2017 forecast, despite reporting significant growth in first-half profit and revenues. The company attributed the revision to the pressure on client spending.
comments powered by Disqus
Follow RTT