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
General Motors (GM) luxury brand is offering 400 dealers as it reshapes the brand's image to better compete with rivals, according to media reports. The Detroit auto maker will provide as much as $180,000 in "transition assistance" to U.S. Cadillac dealers unwilling to invest in a set of new standards... Hotwire of Expedia Inc. cautioned customers about a fake fax memo. The memo, offering deep travel discounts, has an old corporate Hotwire logo in it to falsely imply a connection with Hotwire. It carries phone numbers which are not related to travel booking site. A Singapore-based music start-up has acquired a 49 percent stake in the iconic music and pop culture-focused magazine Rolling Stone, becoming the first outsider investor in the magazine. Financial terms of the deal, which will enable Rolling Magazine to expand its international reach, were not disclosed.
comments powered by Disqus
Follow RTT