With Cable & Wireless Worldwide Plc languishing as the world’s cheapest telecommunications carrier, Vodafone Group Plc and private equity firms may not be able to resist making offers for the British fiber-network operator.
Cable & Wireless Worldwide Plc’s largest shareholder refused to support Vodafone Group Plc’s 1.04 billion pounds ($1.7 billion) offer, saying the bid doesn’t reflect the value of the U.K. fixed-line network operator.
British Sky Broadcasting Group Plc would be a tempting target for Vodafone Group Plc or Telefonica SA -- if billionaire Rupert Murdoch is ready to give up his stake in the U.K.’s biggest pay-TV provider.
Tata Communications Ltd. was given more time to make a bid for Cable & Wireless Worldwide Plc, the fiber-network operator that is also being evaluated by Vodafone Group Plc, two people with knowledge of the matter said.
Vodafone Group Plc agreed to acquire Cable & Wireless Worldwide Plc for 1.04 billion pounds ($1.7 billion) in cash, adding a U.K. fixed-line network to its mobile-phone system and gaining business customers.
European stocks posted their biggest weekly rally since April as the Federal Reserve’s decision to reduce its monthly bond purchases increased investors’ confidence in the strength of the U.S. economic recovery.