Tata Communications backs out from bidding for UK’s CWW

Tata Communications (TCL) has decided not to make a bid for Cable & Wireless Worldwide (C&WW) after having failed to reach an agreement on offer price with CWW.

This leaves Vodafone Group, the world's largest mobile services company as the single bidder for Britain's network operator.

Tata Communications said in a filing with the Mumbai and London stock exchanges, ''TCL today confirms that it has been unable to reach an agreement with CWW on an offer price and therefore confirms that it does not intend to make an offer for CWW.''

According to the new UK Takeover Panel rules, TCL and Vodafone had until 1600 GMT today to indicate whether they planned to make an offer for C&WW. Vodafone, which has also said it was weighing an offer, is yet to respond (See: Tata Comm, Vodafone deadline for C&WW bid extended).

However, TCL has reserved the right to make an offer after six months, should Vodafone not come up with a firm offer.

TCL, which had secured a $2-billion term loan from a consortium of four or five banks to fund the acquisition, was expected to place a bid of around 40-45 pence per share for CWW, according to analysts.