Vodafone to buy Cable & Wireless for £1.04 bn

A graphic from Vodafone's takeover presentation shows in blue the network it will acquire. Credit: Vodafone

Mobile phone giant Vodafone said today that it had agreed to buy ailing telecoms group Cable & Wireless Worldwide for £1.04 billion.

Vodafone unveiled the deal following weeks of speculation and after Indian rival Tata Communications walked away from talks, leaving the FTSE 100 firm as sole runner.

CWW shareholders will receive 38p a share, which is a premium on Friday's closing price of 32p and significantly more than the 25p rumoured to have been offered by Tata.

CWW provides high-speed telecoms services to the police and companies including Tesco and will be attractive to Vodafone as the mobile phone firm looks to grow its corporate arm at a time of slow consumer growth.