Tata Comm drops out of race to acquire CWW [Telecom] [Times of India]
(Times of India Via Acquire Media NewsEdge) MUMBAI: Tata Communications has dropped out of the race to acquire UK-based undersea cable company Cable & Wireless, said a company notice to London Stock Exchange.
The Indian international calling and internet bandwidth provider had initiated an evaluation of Cable and Wireless in March and was due to submit a final bid by Thursday.
The Tata Communications statement said, "TCL today confirms that it has been unable to reach agreement with CWW on an offer price and therefore does not intend to make an offer." However, the Indian telecom company has reserved the right to make an offer, should negotiations pan out within the next six months as permitted by the UK takeover law.
Tata Communications runs optic fibre across India and undersea cables around the world. Cable & Wireless Worldwide provides managed voice, data, hosting and Internet-based services and applications. It has approximately 425,000 km of international cable network and satellite connection over 150 countries.
Vodafone is the only other serious known bidder left for Cable & Wireless, and talks with Tata Communications may revive if the Vodafone decides to break down. Bankers advising Tata Communications include Standard Chartered and Morgan Stanley.
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