Cable & Wireless Share Discussion Threads

[loganair] 02/5/2012 10:33

It's all psychological, 38p begins with a 3 while 40p begins with a 4, feels like one is getting a lot more. Like retailers selling for £99.99 only 1p cheaper than £100, however feels a lot cheaper.

[pennypunter] 02/5/2012 10:29

suppose issue is many people are locked into big losses if 38p goes through- but increasing to 40p or 45p - they will still have big losses

[loganair] 02/5/2012 10:25

I am surprised Orbis haven't been canvassing the 1% to 3% share holders to try and get 25% of shares on their side which would basically block the deal. At least I haven't heard anything.

[donny13] 02/5/2012 10:23

The problem for holders who believe this offer is selling CW. far too cheaply is that those entrusted with the job of turning the company around and realising the full value for share holders, i.e. the Board, have recommended what looks to be a ridiculously low offer. What does this say for the future value of the Company with this management team at the helm.

[sravi] 02/5/2012 10:21

When is this going to happen. It is drifting day by day.

[andrewhbruce] 02/5/2012 10:19

No minimum to my knowledge.

[ch4rles bronson] 02/5/2012 10:16

How many votes have to be cast?

[andrewhbruce] 02/5/2012 10:12

It's 75% of the votes cast under the scheme of arrangement, still obviously a long way off.

[ch4rles bronson] 02/5/2012 10:06

Clearly the mkt(insiders) is aware of further dissenting institution holders. 75% votes in favour is a non starter,..50% if the bid is restructured who knows!

[loganair] 02/5/2012 09:49

When Scottish & Newcastle where being taken-over, no increase in the offer, the management of S&N managed to squeeze out another 20p, from 780p to 800p.

What Vodafone could still do is to allow CWW to pay a Final Dividend of say 3p per share promising to cover the dividend, that's been done many times in the past and therefore technically speaking Vodafone would not have increased their offer.

[prokartace] 02/5/2012 09:47

Why cant Voda go in and buy shares. How could it be that the share trades at a discount to the bid but the bid doesnt succeed??!!

[targatarga] 02/5/2012 09:41

beginning to look silly! imho

[squintyflinty12] 02/5/2012 09:41

Anyone voting against this deal will have their investment halved.Do they really want that?

[andrewhbruce] 02/5/2012 08:33

All very bizarre and getting bizarrer! Can't believe the near 9% discount.

Cash or no cash perhaps CW could declare a special dividend?

Orbis must be talking to VOD and or CW and given what they hear and see must be more inclined to take the money and run?

AB

PS Thanks Roger for all you excellent erudite contributions along the way.

[boix] 02/5/2012 08:04

Vod can't increase offer - it was final.
That's the problem.

[thehairydagger] 02/5/2012 05:45

Did VOD say they will not increase the cash offer, maybe room to chuck in some shares aswell.

[pennypunter] 01/5/2012 23:27

The damage was done at this co when it sold its stake in HK Telecom to the internet outfit Pacific Century Cyberworks - that was stupid deal - they should never have let that go. And it has been downhill with a few interludes since.

The co is not generating cash, if it were its cash balances would be rising, they were falling fast at H1.

Shareholders in this co do not have the stomach for another few years of capex spend and jam tomorrow promises - "it will all be different in a few years time cos the network will be bigger!" how many times have we heard that?

The board have agreed its in the co best interest to be part of a bigger group, it wants to ensure the pensions are safe and employees are ok- its not just about squeezing a few more pence out of VOD when let's face it no one else wants to buy this outfit.

[djwr100] 01/5/2012 18:44

Oh, look! It's not a basket case after all!

[dickbush] 01/5/2012 17:00

From BackChannel Research Monday, April 23, 2012

Vodafone snaps up Cable & Wireless

Vodafone looks to have succeeded in its ambition to buy up commercial network provider Cable & Wireless for a projected £1.04 billion ($1.76 billion), or about 40% of the estimated break up value of the company.

Assuming it is successful, Vodafone will gain; a national fibre-optic broadband network that is separate from BT or Virgin Media's, a massive portfolio of business customers and a global backbone infrastructure that reaches out to over 160 countries via its network of undersea cables.

Suggestions are that the latter will probably be sold off so that Vodafone can concentrate on winning more enterprise customers at home, which is probably what they will do. Though as a long term play, especially if they are interested in servicing large enterprise customers, I think that would be as strategically unwise as the BT forced sale of its mobile phone business...

C&W has a lot of customers but not as many as you might think, remember they have been in serious decline for over 10 years, I rather consider them to be the GEC/Marconi of the UK Telecoms Industry, the parallels are clear.

The real coup with this acquisition is not the customers or the international fibre, it is that UK national fibre infrastructure that they will take possession of as the deal completes. Since 2010 when the use of smart phones and mobile devices saw the cellular data traffic move ahead of voice the largest cost-of-service-delivery items has been the amount of money that Vodafone has had to pay to BT for backhaul, and from here on in Vodafone will benefit from the coming explosion in mobile (I don't think mobile is even out of the gate yet...)

Bottom line. Buying up C&W gives Vodafone its own infrastructure, the reduction in backhaul costs will dramatically improve its revenue per user with all the potential advantages that this brings for customers and investors.

[miikke] 01/5/2012 16:47

Wasn't the ex vodophone chap brought in to assure the deal going through or am I being naive about the situation?

[makeaprofit] 01/5/2012 13:49

Remember if your shares are held in a nominated account you will not get a vote!

[boadicea] 01/5/2012 13:40

The share price seems to be saying that the deal has at best a 50/50 chance of going through. Good.
It looks to me that an intelligent sell off of the assets on a piecemeal basis would provide a better return to shareholders over a couple of years. Why give away that opportunity to Vodaphone?
We are being stitched up for sure imho and no way will it get my vote.

[targatarga] 01/5/2012 12:10

Usually you only get stitched in the smaller aim companies. imho