Vodafone snaps up C&WW for £1bn

UK-BASED telecoms firm Cable & Wireless Worldwide (C&WW) has been pulled out of the shadows, as Vodafone strikes a deal with them. Vodafone reckons that paying £1.044 billion for UK-based telecoms firm CWW will strengthen its enterprise market at home and overseas. Tata Communications had already walked away, leaving Vodafone as the last bidder.

 John Barton, Chairman of CWW, said: “Under the leadership of Gavin Darby, Cable & Wireless Worldwide has outlined a strategy to refocus the business on achieving sustainable cash generation and returns from capital invested.

 “However, the offer from Vodafone announced today will 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.”

C&WW has an online gaming offering, it is not yet clear what the future holds for this sector of the firm. Industry insiders fear that Vodafone may well dump it…then again if they keep it, it will reflect them acknowledging the growing industry.

 The operator added that the acquisition will also provide it with cost-saving opportunities, while the network’s shareholders have approved the bid.

The Communication Workers Union raised concerns about job losses. Andy Kerr, CWU deputy general secretary, said: ‘We would hope that because of the different nature of the work that the two companies undertake – mobile versus fixed line – that there wouldn’t be too large a reduction in the workforce. The limited duplication of work could be in the best interests of job retention within both companies.’