Bloomberg News

Tata Communications’ Loan Said to Involve at Least 3 Banks

March 09, 2012

Tata Communications Ltd. (TCOM), seeking a loan of as much as $2 billion to help finance a possible bid for Cable & Wireless Worldwide Plc (CW/), is in talks with at least three lenders, according to a person familiar with the matter.

The lenders are Standard Chartered Plc, Australia & New Zealand Banking Group Ltd. (ANZ) and State Bank of India (SBIN), the person said, asking not to be identified because the details are private. Another two banks may also join the facility and the loan would have a maturity of less than five years, the person said.

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.

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. Standard Chartered is advising Mumbai-based Tata Communications on the potential purchase, another person familiar with the matter said last week.

To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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