Liberty Global may be set to scoop up Cable&Wireless

22nd Oct 2015 16:55

(ShareCast News) - Liberty Global may snap up Cable&Wireless before early November in a bid to increase its reach in the Carribean and elsewhere, The Wall Street Journal reported citing people familiar with the matter.The transaction, whose value may reach over $5bn, could be announced before they report their results next month, one of the WSJ's sources said.The Financial Times reported the value of the offer at $5.5bn (82p), for a 40% premium. Shares in FTSE 250-listed Cable&Wireless, which has a market capitalisation of £2.5, finished the regular session 2.07% higher at 59.2p.Under UK Takeover rules Liberty would have until 1700 BST on 19 November to either announce its firm intention to make an offer or withdraw its interest. "We see industrial logic for a combination of CWC's assets with LBTY's LiLac and upgrade our target price for CWC to 77p ex div," analysts at Citi said in a research report sent to clients.