Vodafone agrees £1bn deal for C&WW

Vodafone agrees £1bn deal for C&WW

Network provider Vodafone has agreed a £1.04 billion deal for Cable & Wireless Worldwide (C&WW).

The board of the telecoms business decided to accept the cash offer ahead of the midday deadline, which had been extended from the initial date of April 19th.

In a statement, John Barton, chairman of C&WW, said the Vodafone offer, which is subject to shareholder approval, would provide more stability for the company and its shareholders.

It is believed one of Vodafone's main interests in C&WW is its fibre optic network in the UK, which the network provider is hoping to use to cope with the explosion of internet traffic on mobile phones.

Vittorio Colao, chief executive of Vodafone, said that the firm was "pleased" to have reached an agreement with the board of C&WW.

"The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."

However, the deal may still break down as it needs shareholder approval.