Shares in Cable & Wireless Worldwide (C&WW) leap more than 18 percent higher to top the FTSE 250 leaderboard, after india's Tata Communications confirms it is evaluating a potential offer for the British firm, raising the prospect of a bid battle.
The Indian company, part of the tea-to-technology Tata Group conglomerate, could be vying with Britain's Vodafone Group, which said in February it was considering a bid for C&WW.
"Obviously if there is going to be competing bids for C&WW then investors are getting excited. However, there is no cash on the table yet and no indications of what level an offer would be at," says one London-based trader.
Tata Communications says, in a regulatory filing, that its considerations for C&WW were "at a very preliminary stage", adding it would have to decide on an offer for the firm, which has a market capitalisation of around $1.2 billion, by March 29.
C&WW has issued a string of profit warnings since its demerger from Cable & Wireless Communications in March 2010.
To see more on Tata's statement, please click on
Reuters messaging rm://email@example.com