Vodafone has denied a media report that its board is split on whether to go ahead with a potential bid for UK fibre operator Cable & Wireless Worldwide (CWW).
A Vodafone spokesman told TelecomFinance that the rumour of a boardroom dispute is not…
Vodafone has denied a media report that its board is split on whether to go ahead with a potential bid for UK fibre operator Cable & Wireless Worldwide (CWW).
A Vodafone spokesman told TelecomFinance that the rumour of a boardroom dispute is not true.
London newspaper City AM reported today that Vodafone’s deputy chairman John Buchanan had doubts about the deal due to potential reputational damage.
According to City AM, if Vodafone were to acquire CWW, the tax losses of the British fibre operator could be used to offset the cost of the acquisition or to produce a long tax holiday for Vodafone.
The newspaper reported that, while using a company’s tax losses in this way would be legal, some Vodafone board members were concerned that it would tarnish the company’s brand.
Vodafone has previously been criticised by some commentators, including British campaign group UK Uncut, for alleged tax avoidance.
Vodafone is being advised by UBS on the transaction. It has until 29March to declare whether or not they intend to make an offer for CWW.
India-based Tata Communications has also expressed an interest in the UK fibre operator.
