Tata Communications on Thursday confirmed that it is not in race for acquiring British telecom company Cable & Wireless Worldwide.
“TCL today confirmed that it has been unable to reach an agreement with C&W Worldwide on an offer price and therefore confirms that it does not intend to make an offer for C&W Worldwide,” Tata said in a statement.
Tata Communications had last week informed the exchanges that it was considering an acquisition bid for London-listed CWW.
“TCL is evaluating a possible cash offer for CWW,” it informed the BSE.
Tata Communications has amassed a $2-billion (£1.26 billion) reserve for the deal. Meanwhile, according to some media reports, Vodafone’s board is said to be divided over participating in the race due to tax concerns, according to Sunday Times.
Telecom giant Vodafone, however got a four-day extension till April 23 to finalise its bid for acquiring British telecom group Cable & Wireless Worldwide (CWW).
"The Panel on Takeovers and Mergers has consented to an extension of the deadline until 12.00 noon on 23 April 2012," CWW said in a filing on the London Stock Exchange.
However, there is no certainty that any offer will be made nor as to the terms of any offer, it added.
Vodafone on Feb. 13 disclosed that it was in the early stages of evaluating a takeover bid for C&W Worldwide, which counts U.K. based telecommunications operator BT Group PLC as one of its biggest rivals. Tata Communications expressed interest in a bid a few weeks later, reports Wall Street Journal
C&W Worldwide owns the U.K.'s biggest fiber network dedicated to businesses. It also has an international cable network that reaches across Europe, India and throughout Asia. But it has had a tough time since its spinoff from parent Cable & Wireless CWC.LN +1.36% PLC in 2010, suffering a sliding stock price and several management changes.