Vodafone (VOD) Mulls Bid for Large U.K. Cable Provider, Could Pay 32% Premium
Down)
Vodafone Group Plc (NYSE: VOD) shares are ticking higher Monday following weekend reports the company could be mulling a strategic acquisition.
Reports from the Sunday Times suggest Vodafone evaluating a potential bid for troubled U.K. cable operator Cable & Wireless Worldwide Plc (CWW).
In response, Vodafone issued a release Monday: "Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW. There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate.
In accordance with Rule 2.6a of the Takeover Code, Vodafone is required to, by not later than 5pm on 12 March 2012, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies unless the Panel on Takeovers and Mergers has consented to an extension of this deadline."
Based on CWW's closing price last Friday, the company carries a market cap of about £5350 million (or $835 million), though Vodafone might pay as much as 32 percent more to £700 million. For the first three quarters of 2011, CWW reported a net loss of £591 million, with about £624 million in exceptional items counting toward the loss.
Vodafone shares on the NYSE last traded at $27.50, up nearly 0.4 percent from Friday's close.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Reports from the Sunday Times suggest Vodafone evaluating a potential bid for troubled U.K. cable operator Cable & Wireless Worldwide Plc (CWW).
In response, Vodafone issued a release Monday: "Vodafone regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW. There is no certainty that an offer will be made nor as to the terms on which any offer might be made. Any offer, if made, will be in cash but Vodafone reserves the right to change the specie of consideration. A further announcement will be made in due course, if appropriate.
In accordance with Rule 2.6a of the Takeover Code, Vodafone is required to, by not later than 5pm on 12 March 2012, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies unless the Panel on Takeovers and Mergers has consented to an extension of this deadline."
Based on CWW's closing price last Friday, the company carries a market cap of about £5350 million (or $835 million), though Vodafone might pay as much as 32 percent more to £700 million. For the first three quarters of 2011, CWW reported a net loss of £591 million, with about £624 million in exceptional items counting toward the loss.
Vodafone shares on the NYSE last traded at $27.50, up nearly 0.4 percent from Friday's close.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Sun, Sea, Sand and Speed: Outer Banks Beachgoers Can Experience It All This Memorial Day Weekend
- The M2M Software Platform Market Will Grow to $3.85 Billion by 2017 as Merchant-Market Platforms Increasingly Displace Self-Built Solutions, Says ABI Research
- General Electric (GE) Makes $300M Investment in Large Brazilian Conglomerate
Create E-mail Alert Related Categories
Corporate News, Mergers and Acquisitions, RumorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
