My take on Vodafone's latest deal

Tuesday, May 01 2012 by

Vodafone’s latest deal fuels further earnings growth and dividend support

Vodafone's proposed takeover of Cable & Wireless Worldwide for 38 pence per share in cash - valuing the company at roughly £1bn -represents excellent value for Vodafone’s shareholders.

Once completed, and when properly absorbed, the deal could transform Vodafone into a major integrated telecoms business in the U.K., offering for the first time fixed and wireless communications and moving it from fourth to second place, only behind BT. In addition, it will double its corporate business in the U.K., while substantial disposal(s) of some of C&WW’s undersea cable networks as well as tax rebates may make this deal an absolute steal.

In the next few years, the deal is likely to yield substantial operating cost benefits in the U.K., with not only subsequent enhanced earnings potential, but also putting dividend growth prospects on a firmer footing going forward.

For more:


Steven Dotsch - Managing editor - - Guide to Dividend Investing, at: - Dividend Value Profiles, at:

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Vodafone Group Plc (Vodafone) is a telecommunications company. The Company's business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services. more »

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Cable & Wireless Worldwide

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2 Posts on this Thread show/hide all

Tommy Boyd 5th May '12 1 of 2

Once completed = If completed surely?
The 1bn value is still far from being accepted by C&W shareholders.
The big question is how much the ageing under-investment UK cable network is actually worth in an increasingly technologically wireless world and how will Vodaphone make money from it where C&W could not?

Vodafone spent almost 6bn on UK G3 mobile licences; so they have form when it comes to overpaying for infrastructure and the Tax claw backs will just mean even less clarity in future on the state of their accounts,
I'm going to avoid.

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