Vodafone’s C&W bid wins key support

Mobile phone giant Vodafone’s £1 billion bid for ailing telecoms group Cable & Wireless Worldwide was back on track today after the target’s biggest shareholder backed the deal.

The blue-chip’s offer was in serious doubt after Canadian firm Orbis, CWW’s largest investor with a 19 per cent stake, previously refused to throw itself behind the agreement and an initial count showed support falling short of the 75 per cent of shareholder votes required.

But in an unexpected twist ahead of today’s count, Orbis altered its position and decided to back the 38p a share arrangement, which will see Vodafone become the UK’s second biggest telecoms operator behind BT.

A statement from Orbis said its “opposition would only serve to prolong the process” and would likely lead to CWW adjourning today’s meeting to secure the necessary votes.