Vodafone has announced that it has offered to purchased a provider of cable TV, Internet, and telephone services called Cable & Wireless Worldwide. The companies have announced they reach an agreement on the terms of the cash offer that will cost Vodafone £1.044 billion or about $1.7 billion here in the states. The deal is for 100% of the shares in CWW.
The offer will see individual shareholders getting 38 pence, which is about 61 cents per share. The offer is a premium of 92% on the closing price of stock in CWW as of closing on February 10, 2012, which was the last business day before Vodafone made its offer. Vodafone figures that the purchase of the company will strengthen its enterprise in the UK and internationally.
CWW has about 2,570,695 outstanding shares. The offering price of £.38 per share for CWW is final will not be increased. However, Vodafone can increase the offer for third party announces a competing offer for the company before the deal closes.