C&W faces take over by European giant
Cable and Wireless Communications (CWC) is at the center of a takeover bid almost one year after it successfully closed a $1.85 billion deal to take over Columbus International, which trades here as Flow.
The telecommunications giant today confirmed that it was in talks with Liberty Global PLC, a European-based international cable company that operates in 14 countries.
The two companies issued separate statements confirming that they were in discussion about the offer by Liberty Global to acquire C&W for cash and shares.
In its statement, Cable & Wireless however asked its shareholders not to take any action.
For its part Liberty Global said, “this announcement does not amount to an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the “Code”). There can be no certainty that any offer will be made or on the terms on which any offer might be made. A further announcement will be made as appropriate”.
According to analysts, the deal would value Cable & Wireless at more than $US5 billion and could be settled by November.
Liberty Global is owned by billionaire John Malone who already has a 13 per cent stake in C&W.
He landed the shares after C&W bought out Columbus International in November last year.
Local C&W officials would offer no comment, saying the matter would have to addressed from the company’s Miami office.