Tata Communications has reportedly secured bank financing to make a bid for London-listed Cable & Wireless Worldwide on April 19, 2012. The size of the loan has changed from the originally intended $2 billion, but it is not clear if it has increased or decreased.
The company is competing with mobile phone giant Vodafone Plc on the bid for C&W Worldwide. Both have time up to April 19, 2012 to decide whether to make a bid to seek further extension.
The telecom major has received underwritten commitments from five banks: Standard Chartered Bank, ANZ, DBS Bank, ING Bank and State Bank of India. StanChart and Morgan Stanley are M&A advisers to Tata Communications, but Morgan Stanley is not providing funding.
Cable & Wireless Worldwide owns fixed lines that are used by mobile operators to provide links to mobile transmitters and switching offices. It also provides voice, data and hosting services to major British companies such as Next, Tesco and United Utilities, and retains an international cable network connecting more than 150 countries.
