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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Cable&Ww | CW. | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 37.92 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 37.92 |
| Top Posts |
|---|
Posted at 29/5/2012 13:58 by 7kiwi RMS: My numbers came straight from CW's results announcement. Clearly VOD has to put the earlier year figures in their document as the FY12 results were not yet out.But, they would probably have had a very good idea of what the FY12 numbers were going to say and based their bid on that, as well as a realistic forward view of profitability. Overall, I would say a £1 of profit made by CW. is worth less than A £1 of profit made by VOD. VOD has good management, a reasonably sound track record and its earning come from around the globe so they are less sensitive to the UK economy. On the other hand CW. is clearly troubled, has a poor track record, until recently had muppet management. Clearly there is a turnaround job to be done. Why should VOD give too much of the upside away if it has to take the risk of turning the business around? If they were getting it as cheaply as you suggest, why aren't Telefonica or EverythingEverywhere getting involved as they surely have the same "backhaul" issues as VOD. Why did Tata pull out; why hasn't Carlos Slim got involved? The short answer is they think CW. is a basket case and CW. is not worth more to them than what VOD is paying. |
Posted at 22/5/2012 05:48 by 7kiwi djwr,Given today's financial information, can anyone see a valid reason for splitting the company 'to increase shareholder value'?> For some time the international business (CWC) was subsidising the UK business (CW.). It made sense form CWC's perspective to demerge CW. but they needed to get CW. into shape such that it was generating cash. It seems they underestimated how much cash it was capable of generating. Does the financial situation of this company justify the rewards that the management have benefited from? In my view: No. I mean has this demise suddenly happened, or should it have been apparent some time ago, when the split was being organised? CW. was on an upward trend (from a low base) after the Energis deal. But they haven't improved enough, or quickly enough. The issues in the business have been apparent for some time. Alternatively, did the split make take-over of some of the company easier, and, by chance, included a bonus for those that arranged it? Yes. Really CW. is sub-scale in the UK, and it needs a bigger player to make a go of it. Not sure about the "included a bonus" part of your question. |
Posted at 02/5/2012 13:18 by nilla159 cw. paid £330m ? for Thus about 3 years ago because of their fibre optic cable network, this needs to be fully integrated into cw.Pension liabilities seem to be ok according to RMS. Share price was below 20p for Dec- Jan only and 50 - 60p on average before that. The below 20p scenario attracted VOD ,TATA and others.This could happen again. VOD are too straightjacketed to return and have the finger pointed at them. However if cw. went bust and VOD were invited to buy the cables etc from the receivers then I don't think that they could utilise the £5.2 Billion tax losses. The point being they are buying the company for NOTHING. It's Free.So all we are asking for as shareholders is that they are seen to be paying Something for our shares, something more than nothing.45P MAY DO IT. |
Posted at 02/5/2012 12:26 by nilla159 VOD have shot themselves in the foot by saying the offer will NOT be increased.The offer undervalues cw. by some way, and larger shareholders will block the 38p offer so VOD will be unable to proceed. Therefore the shareprice will drop short term (so what) VOD values it at 38p, this is a big potential buying opportunity if you can wait 6 months or so. I imagine that Gavin Darby will do his utmost to turn this around, after all he did spend £340,000 of his own money on these shares in november(can anyone recall an incoming CEO investing anywhere near this amount?),ignoring all conspiracy theories. Also what price would cw. be now had there been no bid interest? Action - sell shares now and buy back on sharp drop. Question ; do you think cw. will go bust if bid evaporates.(remember GD bought 2m shares). |
Posted at 01/5/2012 07:51 by dickbush CW. and its predecessor has gone from one set of awful management to the next over decades. There is nothing wrong with the CW. business or the long term prospects for the industry. Even after paying £100 mil into the pension fund and £40 mil on dividends, the net debt at year end should be substantially less than one times EBITDA. VOD is at 1.9 times; BT is at 1.6 times; AT&T is at 1.8 times. So, if the company needs to borrow to up its capex, there is plenty of room to do so. CW.'s EBITDA Margin is ridiculously low, probably about 17% when the results are in (assuming Darby hasn't thrown the kitchen sink at the second half). BT and AT&T are circa 27% with VOD at 31.5%. OK, so they are the big boys. But even COLT, a much smaller company,and thinly streached throughout Europe, is over 21% (over 22% without the acquisition of MarketPrizm). A good quality management should be able to achieve a mid-20's EBITDA Margin from such a geographically concentrated cost and revenue base. That's a prospective £500 mil plus of EBITDA down the road, substantial free cash flow and dividends to shareholders. VOD has talked the CW. BoD into allowing its acquisition at a knock down price. You can come to your own conclusions w.r.t. Gavin Darby's motives. But the bottom line is that Vodafone has not been asked to pay one penny for the benefits that accrue to it. Instead, CW.'s BoD has bought the argument that, without a bid, the shares will go back to 20p-or less. So by taking 38p they are doing shareholders a big favour. If, as I'm sure they will, Vodafone make full use of the accumulated UK tax losses, they will, in fact, have got the company for free, as well. After they've upped the capital spend, paid for redundancies and for finally putting Cable & Wireless UK, Energis and THUS together, and sold off the unwanted parts of the business, this is going to rank as one of the greatest corporate acquisitions in UK history-for VOD. Look out for the crowing in Vodafone's Report and Accounts for 2012. |
Posted at 28/4/2012 12:46 by pennypunter Colt Tel is a very cautious outfit, last acquisition was basically had for free. Under pressure to divest its vast cash pile of around 300m - difference is Colt Tel generates cash- C&W does not. Colt is also majority owned by Fidelity Investments (over 50%) and are under pressure to pay a dividend- (Colt has not paid a dividend for over a decade), precisly because the majority owner does not want Colt overinvesting again on a big acquisition. Hence Colt will probably end up pretty soon having to pay dividends. Cable arguably paid dividends they could not really afford that were imprudent anyway given the movement in the co performance. Whilst I may hope for a Colt approach- I very much doubt it because Colt would not want to take on Vodafone- that's the main problem with this deal - it frightens away other people. In my view there is only one person able to take on Vodafone, who might be interested in C&W and that is Carlos Slim. |
Posted at 26/4/2012 23:31 by tonsil CWW or CW. is an optionable stock and there is a trade guaranteed to make you a profit on the CW. call options these are available at about 4p and are worth 5.8p if the deal goes through in August under international settlement rules so i am told - check it out and give me the counter arguments.What would it cost to re lay 500,000kn of cable - Dont ask! The asset strippers of the the Slater Walker era would be laughing so loud at this bid. This business is being bid for at a minute fraction of its replacement asset value. CW. should try turning off a few cables to realise the value of these assets to the rest of the planet. Then if there were to occur any kind of satellite EMP scare (Electro Magnetic Pulse) - this could become the most valuable stock on the planet. |
Posted at 26/4/2012 11:05 by dickbush "Many CEO reputations have foundered on the rocks of trying to run Cable & Wireless properly and turn the business around. If they misjudge what they're buying, or their ability to turn around what they're buying, then the reputational damage could be out of proportion to the actual financial impact."CW. and its predecessor has gone from one set of awful management to the next over decades. There is nothing wrong with the CW. business or the long term prospects for the industry. Even after paying £100 mil into the pension fund and £40 mil on dividends, the net debt at year end should be substantially less than one times EBITDA. VOD is at 1.9 times; BT is at 1.6 times; AT&T is at 1.8 times. So, if the company needs to borrow to up its capex, there is plenty of room to do so. CW.'s EBITDA Margin is ridiculously low, probably about 17% when the results are in (assuming Darby hasn't thrown the kitchen sink at the second half). BT and AT&T are circa 27% with VOD at 31.5%. OK, so they are the big boys. But even COLT, a much smaller company,and thinly streached throughout Europe, is over 21% (over 22% without the acquisition of MarketPrizm). A good quality management should be able to achieve a mid-20's EBITDA Margin from such a geographically concentrated cost and revenue base. That's a prospective £500 mil plus of EBITDA down the road, substantial free cash flow and dividends to shareholders. VOD has talked the CW. BoD into allowing its acquisition at a knock down price. You can come to your own conclusions w.r.t. Gavin Darby's motives. But the bottom line is that Vodafone has not been asked to pay one penny for the benefits that accrue to it. Instead, CW.'s BoD has bought the argument that, without a bid, the shares will go back to 20p-or less. So by taking 38p they are doing shareholders a big favour. If, as I'm sure they will, Vodafone make full use of the accumulated UK tax losses, they will, in fact, have got the company for free, as well. After they've upped the capital spend, paid for redundancies and for finally putting Cable & Wireless UK, Energis and THUS together, and sold off the unwanted parts of the business, this is going to rank as one of the greatest corporate acquisitions in UK history-for VOD. Look out for the crowing in Vodafone's Report and Accounts for 2012. Remember these people: |
Posted at 26/4/2012 08:54 by loganair Vodafone's Latest Deal Fuels Further Earnings Growth, Dividend Support by Steven Dotsch:As a Vodafone (VOD) shareholder, I think that Vodafone's takeover of Cable & Wireless Worldwide this week for 38 pence ($0.51) per share in cash -- valuing the company at roughly £1bn ($1.6bn) -- represents excellent value. Not only that, the acquisition should see earnings growth revitalized in the U.K. and support its dividends going forward. Here's why: 1. Cable & Wireless Worldwide's U.K. fiber network Until now, Vodafone lacked a fixed-line presence in the U.K., its only major European market not to have such a network. The transaction will give it in-house fixed-line capacity alongside its wireless network. Even after upgrading Cable & Wireless Worldwide's network migrating traffic, currently carried by third parties such as BT Group (BT) and others, onto Cable & Wireless Worldwide's network is likely to generate substantial savings in the mid-term. Vodafone, like other mobile operators, has been struggling with data capacity as a result of the explosion in Internet traffic from its customers' smartphones and surging data traffic. Cable & Wireless Worldwide's fixed-line network will allow Vodafone to reduce the strain on its own wireless network while it shifts the traffic onto Cable & Wireless Worldwide's fixed lines. Cable & Wireless Worldwide's U.K. fiber network is the second-largest enterprise backbone in the United Kingdom after BT Group, the incumbent telecom operator. 2. Bundled services To compensate for slowing growth in the consumer mobile market, Vodafone has been keen to grow its corporate business. Cable & Wireless Worldwide's portfolio of enterprise customers -- including Tesco, pharmacy-led health and beauty group Boots, airliner Ryanair and various public sector organizations such as the police and the National Health Service -- will double Vodafone's corporate business in the U.K. Cable & Wireless Worldwide's fixed-line network will also mean that Vodafone can now offer integrated (landline, mobile and data) services to its corporate customers, without reselling BT capacity, as confirmed by Vodafone's CEO Colao: The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the U.K. communications market and brings attractive cost savings to our U.K. and international operations. The deal would allow Vodafone to target larger and more complex business customers and help with a wider global partnership push with U.S.-based Verizon. 3. Likely disposal candidate Cable & Wireless Worldwide traces its roots to 1866 when the first submarine cable across the Atlantic Ocean was laid. Since, it has built a network of 425,000km of undersea cables connecting around 150 countries, with holdings in more than 60 global cable systems. While Vodafone can use Cable & Wireless Worldwide's cable network to move its own international calls, some commentators are expecting it to sell off parts of Cable & Wireless Worldwide's undersea cables network and associated holdings, with groups such as AT&T (T), Verizon (VZ), Tata Communications (TCL) and Pacnet already seen as potential contenders. Hong Kong-based Pacnet, an operator of undersea phone and Internet cables in Asia, bid for Cable & Wireless Worldwide's international business last year, but its offer was rejected. This time it may be different. Selling off part of the undersea cable network will allow Vodafone to reduce the cost of the acquisition, perhaps by as much as £250m ($400m) -- or even more. 4. The deal is a steal At a take-out price of about £1bn ($1.6bn), Vodafone secures Cable & Wireless Worldwide at a value of almost 2.7 times trailing 12-month EBITDA, the lowest multiple for a takeover of a telecoms company greater than $1bn since 2008, according to data compiled by Bloomberg. Last December, analysts at Investec estimated that Cable & Wireless Worldwide could be worth around £2.5bn ($4bn) if it were split up and be sold off in parts, instead of purchased as a single listed entity. It valued its biggest asset -- its U.K. fiber network -- at around £1bn ($1.6bn) of that figure. And then there are the £5bn ($8bn) of capital allowances belonging to Cable & Wireless Worldwide, which (in part) Vodafone may be able to utilize, with Vodafone's CFO confirming: The company would be able to use the allowances but stressed that the tax benefits were not a key part of the deal's rationale. Sure, he would say that following a recent tax dispute over a £1.25bn ($2bn) settlement regarding Vodafone's Luxembourg subsidiary. And don't forget the ongoing tax saga in India. Are there any risks? Vodafone's CEO Vittorio Colao has never made a takeover offer for a public British company before, and there is a risk associated with the purchase, according to Berenberg's Marsch: Many CEO reputations have foundered on the rocks of trying to run Cable & Wireless properly and turn the business around. If they misjudge what they're buying, or their ability to turn around what they're buying, then the reputational damage could be out of proportion to the actual financial impact. I think this purchase was very much a one-off opportunity where Vodafone saw a chance to pick up an interesting asset at a great price. But I do not think that this U.K. "add-on" acquisition signals that the company is going on another multibillion buying binge anytime soon. The verdict When properly absorbed, the deal clearly transforms Vodafone into a major integrated telecoms business in the U.K., offering for the first time fixed and wireless communications and moving it from fourth to second place, only behind BT. In addition, it will double its corporate business in the U.K., while substantial disposal(s) as well as tax rebates may make this deal an absolute steal. In the next few years, the deal is likely to yield substantial operating cost benefits in the U.K., with not only subsequent enhanced earnings potential, but also putting dividend growth prospects on a firmer footing going forward. Disclosure: I am long VOD. We run the Dividend Income Portfolio, which owns a shareholding in Vodafone Plc, purchased when the share was historically undervalued as per our valuation methodology. |
Posted at 24/4/2012 15:35 by rogermauricesmith AO148009 mentioned earlier (post no 4683) that although Vodafone has declared this offer final it might be able to sweeten the terms to accomodate Orbis by having CW declare a last dividend. The offer docuent states: "The Offer price is offered on the basis that CWW shareholders will not receive any further dividends. If a dividend were to be declared, the Offer price would be adjusted downwards on an equivalent basis." This seems to preclude it but I don't believe it is a statement that is binding legallly on Vodafone. I think it could change its mind and allow CW to pay, say a £200m dividend, just about the amount of cash it has on hand. This would probably placate Orbis and make the offer a more palatable £1.2 billion or the equivalent of 45p a share. We could then all go away a lot happier. |
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