Tata Communications to raise a term loan of $2 billion to finance its bid for CWW

In continuation of its attempts to acquire Cable and Wireless Worldwide (CWW), Tata Communications (TCL) is reportedly looking to finance its bid by raising a term loan of $2 billion, say news reports.

Further, it is believed that the loan will extend from between three to five years. Also, Standard Chartered, who is advising Tata Communications on the potential bid, will reportedly play a key role in raising this loan.

Prior to this, it was reported that TCL was considering bidding for Cable & Wireless Worldwide (CWW). It is believed that CWW?s valuation may touch $1.2 billion, especially for its voice, data and IP services. About one-third of CWW?s ?2.2 billion revenues come from carrying internet and voice traffic for other telecom companies.

CWW has come on the slabs owing to declining market value, which reportedly went down by 70 per cent in the past two years.

Industry analysts believe that the deal, if it goes through, will enhance Tata Communications? footprint in the voice, data and undersea cable network segments.