Shares in Cable & Wireless Communications (CWW) are the biggest risers on the FTSE All Share today (currently up 16%), thanks to a formal expression of bid interest from Tata Communications. The India-based global comms arm of the Tata conglomerate says it is in the preliminary stages of assessing a possible cash offer for CWW.
So now there are two, at least. Tata Communications joins Vodafone in declaring its interest in CWW (see Vodafone and C&W: just browsing thank you). Today's news makes it more likely that a deal will be done and raises the possible pricing level.
Tata Communications' motives for buying CWW would chiefly be the opportunity to boost - relatively cheaply - network, data centre and corporate customer coverage, particularly in the UK/Europe but also in Asia-Pac, Middle East/Africa and North America. Potentially some of those assets and accounts could be handy to Tata stablemate Tata Consultancy Services (TCS) as well. In any case it has til 29th March to make up its mind. Vodafone has til the 12th.