Vodafone’s C&WW bid wins backing of ISS

Vodafone’s C&WW bid wins backing of ISS

Vodafone's £1 billion bid for Cable & Wireless Worldwide (C&WW) is a step closer to being completed after a leading shareholding group recommended the deal.

Institutional Shareholder Services (ISS) proposed that shareholders in the company should accept the 38p a share bid from Vodafone.

There has been opposition to the deal, with Orbis, C&WW's largest shareholder snubbing the initial valuation of the company.

Despite opposition to the deal it is thought that Orbis would be comfortable owning shares in a Vodafone-led company.

The ISS statement said: "Based on reasonable sale process with two bidders, adequate valuation and the risk that investors face in going through a difficult turnaround, we recommend shareholders support the Vodafone offer."

A vote on the deal will take place on June 16th, with Vodafone needing to obtain acceptances from shareholders holding 75 per cent of the company's stock for its scheme of arrangement to succeed.

Should the deal go ahead Vodafone will greatly expand its fixed-line services and hopes to pass on the benefits to customers.