CABLE Wireless Worldwide’s largest shareholder refused to support Vodafone’s £1.04 billion offer, saying the bid does not reflect the value of the UK fixed-line network operator.
“The proposed deal is clearly attractive for Vodafone shareholders,” said Orbis Holdings, which owns a 19 per cent stake. “However, we are concerned that the offer price does not . . . reflect the value inherent in CWW.”
Vodafone, the largest wireless operator, agreed to pay 38 pence a share in cash in an offer recommended by Cable Wireless’s board. Investors holding 18.6 per cent of Cable Wireless shares have agreed to back the deal.
Vodafone, which needs support from shareholders representing 75 per cent, predicts the deal will be completed in the third quarter.
Vodafone became the sole bidder for London-based Cable and Wireless after Tata Communications last week failed to agree on a price and decided against making an offer.
Vodafone is pursuing a European fixed-line acquisition for the first time since 2010, when it ended talks to buy Germany’s Kabel Deutschland Holding. – (Bloomberg)
