Tata Communications (NYSE: TCL) and Vodafone (LSE: VOD.L) now have until April 19 to decide whether or not to make a formal bid for Cable & Wireless Worldwide (LSE: CW.L).
As reported in Reuters, Tata and Vodafone's requests to extend their time to either confirm or drop an offer for the service provider by an additional three weeks was approved by the UK's Panel for Takeover and Mergers.
Both service providers could also ask for another extension on behalf of CWW. The original extended deadline was set for March 29.
Citing unnamed sources close to the situation, CWW was going to ask for an extension so both service providers could get more time to evaluate a possible deal.
Buying CWW has possible benefits for both Tata and Vodafone. Tata could use CWW to expand their international network further with CWW's international network that currently connects over 150 countries. Likewise, Vodafone could use the network assets to not only offload Internet traffic, but also broaden its portfolio of wireline-based business services.
For more:
- Reuters has this article
Related articles:
Vodafone, Tata want more time to decide on Cable & Wireless Worldwide bid
Vodafone gets more time to decide on bid for Cable & Wireless Worldwide
Tata Communications evaluates bid for Cable & Wireless Worldwide
Vodafone's potential bid for Cable & Wireless fails to excite analysts