Tata Communications 11th hour withdrawal from negotiations with Cable & Wireless Worldwide sent the troubled companies shares into free-fall yesterday and left the way clear for Vodafone to snap up a bit of a bargain.
The estimated breakup value of Cable & Wireless is estimated to be around £2 1/2 billion, approximately £.90 per share. This may have led to the Cable & Wireless board to reject the £.42 a share offer made by Tata. With CW shares standing at £.31 each as I type this, you wonder if they've gained anything.
Over the years of watching the ups and downs and further downs of Cable & Wireless it's often occur to be and my colleagues at Cable & Wireless would be a better fit with British Telecom supporting their increasingly successful BT Global Services organisation.
Here is an interesting if not terribly well-informed article posted on interactive investor on the 16th which goes into rather more details. The comment that Cable & Wireless is the provider of choice for 70 of the FTSE 100 companies is terribly wide of the mark, after years of decline Cable & Wireless is left as one of the many, many, many, providers that service the U.K.'s largest companies. Don't believe the PR spin Cable & Wireless's position amongst these organisations is way behind that of BT Group and Verizon.