Vodafone and CWW agree terms

Vodafone has finally struck a deal to buy Cable & Wireless Worldwide (CWW) in a deal worth just over one billion pounds.

Under the terms of the offer, CWW shareholders will get 38p per share in cash, which Vodafone said was its final offer unless another bidder entered the fray.

Indian firm Tata Communications was in the running but dropped out after it could not agree a price for CWW.

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CWW's board is unanimously recommending shareholders take the offer on the table.

Vodafone said the offer was a premium of 92% to the closing price of 19.8p per CWW Share on February 10th, 2012 - the last business day before the offer period.

CWW has issued a number of profit warnings since it split from Cable & Wireless in March 2010.

However, Vodafone sees it as a good way of getting new fixed lines to take the strain off its wireless network, as well as building its position in the corporate sector.

"We are pleased to reach agreement with the board of Cable & Wireless Worldwide, who unanimously recommend our offer," said Vittorio Colao, Chief Executive of Vodafone.

"The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations," he added.

John Barton, Chairman of CWW said Vodafone's offer would enable shareholders "to crystallise a value, in cash, that represents a significant premium to recent trading levels and avoid exposure to the risks inevitably presented by executing a medium-term improvement strategy".