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.
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.
Vodafone Group Plc is left as the only potential bidder for Cable & Wireless Worldwide Plc after Tata Communications Ltd. failed to agree on a price and decided against making an offer for the U.K. network operator.
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, which provides telecommunications services to the U.K. police force, said full-year profit will miss estimates because of slower-than-expected sales orders. Chief Executive Officer Jim Marsh resigned.
Tata Communications Ltd. said it may make a cash offer for Cable & Wireless Worldwide Plc, setting up a potential rivalry with Vodafone Group Plc to win control of the owner of Britain’s largest U.K. business fiber network.
Cable & Wireless Worldwide Plc, which jumped 45 percent in London trading after Vodafone Group Plc said it’s evaluating a potential bid, hired NM Rothschild & Sons Ltd. and Barclays Capital as advisers before any approach.