Vodafone in £1 billion Cable & Wireless Worldwide buyout deal

VODAFONE’S £1 billion bid for ailing telecoms group Cable & Wireless Worldwide (CWW) was cast into doubt yesterday after the target’s biggest shareholder refused to back the deal.

Fund manager Orbis, which owns a 19 per cent stake in CWW, said the 38p-a-share recommended offer undervalued the firm despite it being a 92 per cent premium to the closing price on the day before the talks were unveiled.

CWW chairman John Barton said the deal was an “exciting opportunity” for CWW’s investors which would enable them to realise cash at a significant premium to recent trading levels.

The agreement between CWW and Vodafone came after Indian rival Tata Communications walked away from discussions last week. Shares in CWW closed up 3.9p at 35.9p.