Tata Communications Ltd. (TCOM) is seeking a loan of as much as $2 billion to help finance a possible bid for Cable & Wireless Worldwide Plc (CW/), according to a person familiar with the matter.
The Mumbai-based company hired Standard Chartered Plc to advise it on the potential purchase, another person familiar with the matter said last week, asking not to be identified because the details are private. Standard Chartered would also help to arrange the loan, the person said today.
Tata Communications said it may make a cash offer for Cable & Wireless, setting up a potential rivalry with Vodafone Group Plc (VOD) to win control of the owner of Britain’s largest business fiber network. Talks are “at a very preliminary stage” and Tata Communications must decide whether it will make an offer by March 29, the company said on March 1.
Divya Anand, a Tata Communications spokeswoman, declined to comment on the planned loan when contacted at her office in Mumbai today.
Shares in Cable & Wireless jumped as much as 2.9 percent in intraday trading in London and were down 0.3 percent at 32.89 pence as of 10:52 a.m. local time. Tata Communications fell 2.4 percent to 235.3 rupees at the close of trading in Mumbai.
London-based Cable & Wireless, which has replaced two chief executive officers since June, has assets ranging from a U.K. core fiber network to an overseas enterprise unit.
Tata Group, which controls the telecommunications company, has acquired companies in the U.K. including Jaguar Land Rover and Corus Group Plc.
Cable & Wireless is being advised by NM Rothschild & Sons Ltd. and Barclays Capital.
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