Tata Communications’ $2 Billion Loan Attracts 4 Banks
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Tata Communications Ltd. (TCOM)’s loan of as much as $2 billion to help finance a possible bid for Cable & Wireless Worldwide Plc (CW/) has attracted DBS Bank Ltd., according to two people familiar with the matter.
DBS Bank joins Standard Chartered Plc, Australia & New Zealand Banking Group Ltd. (ANZ) and State Bank of India (SBIN) as underwriters on the loan, the people said, asking not to be identified because the details are private.
About two more banks are considering joining the facility at the senior level to help underwrite it, the people said.
Tata Communications said it may make a cash offer for Cable & Wireless, setting up a potential rivalry with Vodafone Group Plc (VOD) to win control of the owner of Britain’s largest business fiber network. Talks are “at a very preliminary stage” and Tata Communications must decide whether it will make an offer by March 29, the company said on March 1.
Vodafone and Tata Communications seek to extend that March 29 deadline because Cable & Wireless hasn’t provided sufficient information to the bidders yet, the Sunday Telegraph reported on March 25, without saying how it got the information.
A spokeswoman for Tata Communications, who asked not to be named citing company policy, declined to comment on the financing when contacted by phone in Mumbai today.
Two telephone calls and an e-mail to DBS Bank Singapore- based spokeswoman, Edna Koh, seeking comment on the same weren’t immediately returned.
London-based Cable & Wireless, which has replaced two chief executive officers since June, has assets ranging from a U.K. fiber network to an overseas enterprise unit. Tata Group, which controls the telecommunications provider, has acquired companies in the U.K. including Jaguar Land Rover Plc and Corus Group Plc.
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