Mobile and fixed-line operator Singapore Telecoms (SingTel) has contacted investment banks in Asia and Europe about a bid for UK corporate telco Cable & Wireless Worldwide, reported the Independent on Sunday.
Citing an unnamed adviser, the report claimed…
Mobile and fixed-line operator Singapore Telecoms (SingTel) has contacted investment banks in Asia and Europe about a bid for UK corporate telco Cable & Wireless Worldwide, reported the Independent on Sunday.
Citing an unnamed adviser, the report claimed that, although the talks are still at an early stage, SingTel has enough firepower to acquire CWW, which has a market cap of £1.8bn.
AT&T was last week also reported to be interested in CWW, prompting the latter’s shares to rise 7.7% to 71.95p on Wednesday.
A spokesperson for CWW declined to comment on any speculation, but a source close to the group suggested a bid from AT&T was far less likely than one from SingTel.
Takeover speculation has surrounded CWW since the company was split from parent Cable & Wireless in March. Rothschild and Gleacher Shacklock acted as joint sponsors and financial advisers on the demerger. Allen & Overy provided legal advice. Barclays Capital, BNP Paribas, JPMorgan, Lloyds TSB and RBS also participated as financial advisers.
In related news, late in August SingTel announced it had appointed Hui Weng Cheong as CEO of its International division, which is responsible for overseas investments. Cheong, who is currently COO with SingTel’s Thai associate, Advanced Info Service, will take over from Lim Chuan Poh on December 1.
SingTel did not respond to requests for comment.
