Vodafone to acquire Cable and Wireless for $1.7 bn

Vodafone would acquire Cable and Wireless Worldwide for $1.7 billion as it was attracted by its fiber network. With this acquisition, Vodafone will add fixed telephone line network and services for businesses to Vodafone's wireless operations.

Vodafone has been the sole bidder for the company after Tata Communications decided last week against making an offer after it failed to agree on a price.

Vodafone said Cable and Wireless Worldwide was attractive because of its fiber network, which can provide support for increasing data traffic “at considerably lower cost compared to prevailing market rates for leased capacity.”

Vittorio Colao, the Vodafone chief executive said, "The acquisition would create a leading integrated player in the enterprise segment of the U.K. communications market and bring attractive cost savings to our U.K. and international operations."