Vodafone offers £1.04bn CW

Vodafone has made an offer of £1.04bn ($1.7bn) in cash for C&W (Cable and Wireless Worldwide). This works out at 38p per share which is considerably higher than the original expected offer of £700m. Vodafone is seeing vastly increased mobile data traffic and this may be a defensive move to lessen it's reliance on BT who provide most of their backhaul. Vodafone also wholesales several BT business services, which they'll now be able to offer in-house. C&W also run a broadband LLU service for other providers and again this could be directly used to sell broadband to Vodafone's consumer base. Vodafone replaced all their DSL connections at cell sites with fibre from BT, these can also all be taken in-house using the significant assets of C&W's fiber network that covers much of the UK and in places like Scotland they have better coverage than BT (due to the historical acquisition of THUS Plc which was originally Scottish Telecom prior to the acquisition of Demon Internet). There's sure to be many problems integrating the two companies, though in the long term they gain access to a enterprise and consumer solutions and should deliver long term costs savings
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