CW&W backs Vodafone bid after poor trading results

CW&W backs Vodafone bid after poor trading results

Cable & Wireless Worldwide (C&WW) has encouraged its main shareholders to accept the £1.04 billion deal tabled by Vodafone.

The firm revealed its wishes after publishing financial results that indicated a drop in annual earnings of 4.8 per cent to £2.15 billion for the year to the end of March.

Gavin Darby, the chief executive of C&WW, warned that the fixed-line operator would underperform this year due to current difficult economic trading conditions.

Shareholders are set to vote on the deal on June 18th, but Orbis Holdings, the main shareholder in C&WW is against the bid, which it believes undervalues the company.

Mr Darby urged shareholders to participate in the vote and ensure the Vodafone deal is completed.

C&WW shares were trading at about 20p before bid talks emerged, just over half the 38p per share that was offered by Vodafone.

The company is hoping to improve its offering by acquiring the struggling telecoms provider and all of its services.