Tata Communications has firmed up its plans to acquire Cable & Wireless Worldwide (CWW).
As per news reports, the company is now looking to pump in $ 2 billion in the same and has appointed Morgan Stanley and Standard Chartered as its long-term advisers.
Meanwhile, the State Bank of India and the Australia and New Zealand Bank have allegedly also joined the consortium of advisors.
Prior to this, the company was still to take a final decision on whether to participate in the bidding process.
It was, however, looking to finance its bid by raising a term loan of $2 billion. It is believed that the loan will extend from between three to five years.
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.
