Tata Said to Attract ING to $2 Billion Loan for C&W Bid
Tata Communications Ltd. (TCOM)’s acquisition loan of as much as $2 billion to help finance a possible bid for Cable & Wireless Worldwide Plc (CW/) has attracted ING Groep NV, according to two people familiar with the matter.
ING has received internal credit approval to help underwrite the facility, along with Australia & New Zealand Banking Group Ltd., DBS Bank Ltd., State Bank of India and Standard Chartered Plc, the people said, asking not to be identified because the details are private.
Tata Communications was given more time today to make a bid for Cable & Wireless, the U.K. fiber-network operator that is also being evaluated by Vodafone Group Plc. (VOD) The companies now have until April 19, Cable & Wireless said in a statement today. The original deadline for bids was today.
Divya Anand, a Tata Communications spokeswoman based in Mumbai, declined to comment on the potential financing when contacted by telephone today. Ong I Ling, a spokeswoman for ING in Singapore, also declined to comment.
Vodafone is pursuing a European fixed-line acquisition for the first time since 2010, when it ended talks with Kabel Deutschland Holding AG (KD8), Germany’s largest cable-operator. The Newbury, England-based company may use Cable & Wireless’s fiber network to boost its fixed-line system in the U.K. and relieve the strain of surging data traffic. Cable & Wireless is the owner of Britain’s largest business network.
For Tata Communications, purchasing Cable & Wireless would complement its operations in emerging markets including South Africa, the Middle East and Asia. Tata Group, which controls the telecommunications company, has acquired companies in the U.K. including Jaguar Land Rover Plc and Corus Group Plc.
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