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Cable and Wireless Worldwide unable to find a buyer
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Old 19-04-2012, 00:59   #1
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Cable and Wireless Worldwide unable to find a buyer

Cable and Wireless Worldwide was approached by Vodafone and Tata communications, Vodafone missed the deadline and Cable and Wireless extended the timescale for Vodafone to make an offer, Tata Communications began showing an interest. As of this week, Tata Communications has pulled out saying it does not intend on buying Cable and Wireless Worldwide. Vodafone is likely to do the same. So I don't think Cable and Wireless Worldwide will be going anywhere just yet. The register and another business focused news service mentioned that Virgin Media and O2 could be possible bidders. But given that Cable and Wireless Worldwide is not giving in to Vodafones offer,I don't think Virgin Media or O2 will come up with anything better. The only interest Vodafone and O2 will have in Cable and Wireless Worldwide is the UK infrastructure, if Virgin Media would be interested it will be purely for the business customers that Cable and Wireless Worldwide holds such as Tesco,Post Office,Co-Operative,Morrisons,Aviva,HMRC,Scottish Power,Lloyds TSB,RBS,EDF Energy ect......
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Old 19-04-2012, 12:35   #2
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Re: Cable and Wireless Worldwide unable to find a buyer

Virgin Media would not buy C&W.

They don't have the money and as you say they don't need the C&W network (which is huge and no doubt the Ops and Maint costs for running the network is a big monkey on their back)

It's not just their vast UK infrastructure but they also have thousands of km of submarine cables that cost millions to maintain.

They wouldn't spend big just to gain some customers, much better to get the customers to switch on the back of the uncertainty of the company's future.

The way forward would be to break up C&W and sell it off piecemeal. C&W UK Network is made up of the old Mercury, Energis, Thus & Yourcoms networks

O2 would have no interest in the submarine network but may want some of the UK Network, whereas TATA wouldn't really have much interest in the UK Network but would like some of the submarine cables - if not all of them.
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Old 19-04-2012, 15:56   #3
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Re: Cable and Wireless Worldwide unable to find a buyer

[QUOTE=Pierre;35416135]Virgin Media would not buy C&W.

I think Vodafone would be mad to abandon it, they have until 5pm today to make a decision. It will give Vodafone a good opportunity to expand its operations in the UK and cut a lot of costs. If they didn't want the infrastructure leading to other countries and submarine cables they could sell that off eventually. When I mentioned Virgin Media, I was just refering to the UK mainland business and the rest of Cable and Wireless Worldwide be sold off as you mentioned. That new CEO has only been there a few months, maybe he could turn the company around, who knows? Or maybe it was doomed from day one when the conservative government was too quick to sell it off at a cheap price. But this company in particular has always been known to be struggling whether it was the residential sector or just evolving existing businesses such as One2One which was so far behind in 2000, a year after they sold it off at a very cheap price. They start things off well and then suddenly like One2One and Bulldog things come to a standstill.
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Old 23-04-2012, 10:00   #4
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Re: Cable and Wireless Worldwide unable to find a buyer

Vodafone in Cable & Wireless buyout.

http://www.guardian.co.uk/uk/feedarticle/10208347

Quote:
Vodafone unveiled the deal following weeks of speculation and after Indian rival Tata Communications walked away from talks, leaving the FTSE 100 firm as the sole runner.

CWW shareholders will receive 38p a share, which is a premium on Friday's closing price of 32p and significantly more than the 25p rumoured to have been offered by Tata.

CWW provides high-speed telecoms services to the police and companies including Tesco and will be attractive to Vodafone as the mobile phone firm looks to grow its corporate arm at a time of slow consumer growth.

Vodafone said a reduction in headcount and office locations in places where the two firms overlap was likely but specific numbers are yet to be determined.

Vittorio Colao, Vodafone Group chief executive, said: "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."

Vodafone said CWW's UK fibre network - which runs some 20,500 kilometres - fits well with the location of Vodafone Group's UK base stations and will provide fast data traffic at a lower cost to the wider market as demand for mobile data continues to grow.
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Old 23-04-2012, 10:22   #5
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Re: Cable and Wireless Worldwide unable to find a buyer

They'll break up C&W and sell off it's submarine cable assets.

TATA may well come back into the picture for that.
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Old 25-04-2012, 00:27   #6
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Re: Cable and Wireless Worldwide unable to find a buyer

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Originally Posted by Pierre View Post
They'll break up C&W and sell off it's submarine cable assets.

TATA may well come back into the picture for that.
But won't the submarine cable come into good use for Vodafone? Cable and wireless needed a mobile network and Vodafone needed an infrastructure, they are a good match although I can see vodafone keeping the submarine cable assets but charging extortionate rates for any business to use them.
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Old 25-04-2012, 16:17   #7
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Re: Cable and Wireless Worldwide unable to find a buyer

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Originally Posted by m419 View Post
But won't the submarine cable come into good use for Vodafone?
I don't see how it fits in with their business

Quote:
Cable and wireless needed a mobile network
Did they?

Quote:
and Vodafone needed an infrastructure, they are a good match although
They didn't really "need" the infrastructure as they have an infrastructure using other carriers.

They can now of course migrate themselves onto the C&W network, but of course they now have all the costs associated with owning and maintaining a core fibre network, whereas in the past they didn't have to worry about that.

They bought the network for the business customers, as they will now be able to sell a bundled fixed line and mobile offering.

Quote:
I can see vodafone keeping the submarine cable assets but charging extortionate rates for any business to use them.
I can't see it, I may be proven wrong but I just don't see how the submarine assets, many of which are not wholly owned, fit in with Vodafone.
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Old 27-04-2012, 00:35   #8
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Re: Cable and Wireless Worldwide unable to find a buyer

Quote:
Originally Posted by Pierre View Post
I don't see how it fits in with their business

Did they?



They didn't really "need" the infrastructure as they have an infrastructure using other carriers.

They can now of course migrate themselves onto the C&W network, but of course they now have all the costs associated with owning and maintaining a core fibre network, whereas in the past they didn't have to worry about that.

They bought the network for the business customers, as they will now be able to sell a bundled fixed line and mobile offering.



I can't see it, I may be proven wrong but I just don't see how the submarine assets, many of which are not wholly owned, fit in with Vodafone.
Vodafone may want to diversify into other markets, Vodafone has already proven that it expand on vast scale. In a distant future they will also consider re-entering the residential sector, of course they will already be doing this as Demon internet services are a part of Cable and wireless as part of Thus and broadband users have already been migrated onto the Cable and Wireless LLU network. People would be more likely to use the service under the vodafone brand, would you sign up to anything under Cable and wireless given its track record with Bulldog and its former chaotic cable company? When I say Cable and wireless needs a mobile network, I was refering to its current offering which it pays another mobile network to provide it where there are no cable and wireless cells of its own, they wouldn't have to pay this as Vodafone already has its own network across the UK,Republic of ireland,europe,india,Australasia and part ownership of Verizon Wireless in the USA. And the submarine cables, surely there will be use for them, remember Vodafone can't stay just a mobile network forever, by having an infrastructure, they are future proofing there business as it opens more doors for them, something that O2 and Everything Everywhere lacks in especially in the UK. Everything Everywhere can be easily brought down by Vodafone there is a limit to what O2 and Everything Everywhere can offer,Everything Everywhere might have more personal customers at the moment but they don't spend as much as the majority of Vodafone customers do and are they able to offer business services to the extent of what BT can offer? no, but Vodafone will. another thing, Deutsche Telekom is still wanting rid of the UK and there are rumours that they might sell there 50% share in Everything everywhere, signs that the company is still not on target? Or just has there business become saturated that there is little chance of expansion?
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