According to a regulatory filing, any acquisition plans are "at a very preliminary stage" and Tata may decide on whether to make an offer over the next few weeks.
Buying C&W Worldwide would help Tata enhance its presence in emerging markets including South Africa, the Middle East and Asia.
In the filing, Tata also revealed that it has hired Standard Chartered Plc as a financial adviser and that it was thinking of making an all-cash offer for C&W Worldwide.
If Tata does make a bid on C&W Worldwide it may have to battle Vodafone, which revealed last month that it was also looking at a possible deal for the UK-based provider.
At this point, Cable & Wireless Worldwide said it has not received a formal offer from Tata Communications.
There are a number of challenges that Cable & Wireless Worldwide and Tata face today. Since its demerger from Cable & Wireless Communications in March 2010, CWW has issued a number of profit warnings and saw the departure of two CEOs, Jim Marsh and John Pluthero, last year.
Meanwhile, Tata not only has seen losses in the past two fiscal years to March 2011, but it also is still partly owned by the Indian government, a factor that could limit any bids.
- Reuters has this article
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