Cable & Wireless Worldwide

Cable & Wireless Worldwide plc was a British multinational telecommunications services company created in 2010 through the demerger of Cable & Wireless plc. The separation divided the former parent’s activities into two separately listed businesses: Cable & Wireless Worldwide, which retained the enterprise, government, carrier and reseller telecommunications operations, and Cable & Wireless Communications, which concentrated on international operations in Central America and the Caribbean and later became part of Liberty Latin America. Cable & Wireless Worldwide operated from headquarters in Bracknell, United Kingdom, and maintained a geographically distributed business spanning Europe, Asia-Pacific, India, the Middle East and Africa, and North America. Its principal customers were large corporate organizations, public-sector and government bodies, other telecommunications carriers, and communications resellers. Rather than being primarily a consumer-facing mobile brand, it competed in business communications and network services, with offerings built around managed voice, data connectivity, IP-based services, enterprise networking and related communications infrastructure. The company’s early standalone period was difficult. After the demerger, its share price initially reached 98.5 pence, but later declined sharply, reaching 13 pence in November 2011. The deterioration encouraged speculation that the company could become an acquisition target and coincided with management changes. Chairman John Pluthero became chief executive in June 2011 after Jim Marsh resigned, while former Vodafone executive Gavin Darby was appointed chief executive in November of the same year. Cable & Wireless Worldwide subsequently became the subject of competing strategic interest. Vodafone sought to strengthen its enterprise communications capabilities and gain access to Cable & Wireless Worldwide’s extensive fibre network, while Tata Communications also considered a bid. Tata withdrew from the process, leaving Vodafone as the sole bidder. In April 2012 Vodafone agreed to acquire Cable & Wireless Worldwide for approximately £1.04 billion in cash. Shareholders approved the transaction in June, and the acquisition completed on 30 July 2012. Following completion, Nick Jefferey, formerly associated with Cable & Wireless and then chief executive of Vodafone Global Enterprise, was appointed to lead the acquired business. Cable & Wireless Worldwide ceased to operate as an independent company when its activities were fully integrated into Vodafone on 1 April 2013. Its principal strategic legacy was the incorporation of its fixed-line, fibre and enterprise network capabilities into Vodafone’s global business-services platform.

Cable & Wireless Worldwide emerged from the restructuring of Cable & Wireless plc at the beginning of the 2010s. The parent company separated its international division into Cable & Wireless Communications, while the remaining business was reorganized as Cable & Wireless Worldwide plc. The new company was formally created on 26 March 2010 and retained the operations focused on business and institutional telecommunications. The split temporarily produced an unusual FTSE 100 configuration in which the index contained 101 companies before Cable & Wireless Communications moved to the FTSE 250. The standalone company served a different market from consumer mobile operators. Its customers included major corporations, government organizations, telecommunications carriers and resellers. It supplied managed voice, data, IP communications and network services across a broad international footprint. Its capabilities included fixed-line and fibre infrastructure that could support enterprise connectivity, carrier interconnection and integrated communications solutions. The first years after the demerger were turbulent. The company’s shares initially traded as high as 98.5 pence, but subsequently fell to 13 pence in November 2011. The decline increased takeover speculation and placed pressure on the board. Jim Marsh resigned as chief executive in June 2011, after which chairman John Pluthero assumed the chief executive position. In November 2011 the company named Gavin Darby, a former Vodafone Group executive, as its new chief executive. Cable & Wireless Worldwide’s weak market position made it an attractive strategic acquisition. Vodafone wanted to expand its enterprise communications platform, Vodafone Global Enterprise, and obtain greater access to fixed networks and fibre assets. Tata Communications also considered acquiring the company, but withdrew from the contest. Vodafone announced a cash agreement worth approximately £1.04 billion on 23 April 2012. Shareholders approved the offer on 18 June, and the acquisition formally completed on 30 July 2012. Nick Jefferey, who had previously worked with Cable & Wireless and was chief executive of Vodafone Global Enterprise, became chief executive of the acquired operation. Vodafone subsequently incorporated the business into its own operations. The integration was completed on 1 April 2013, ending Cable & Wireless Worldwide’s existence as an independent telecommunications company. The company’s network and enterprise capabilities continued as part of Vodafone’s business-services activities rather than as a separate listed brand.

1. 2013Integration into Vodafone is completed

   Cable & Wireless Worldwide was fully integrated into Vodafone on 1 April, ending its independent corporate existence.

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2. 2012Vodafone announces acquisition agreement

   Vodafone agreed to buy Cable & Wireless Worldwide for approximately £1.04 billion in cash.

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3. 2012Shareholders approve Vodafone offer

   Shareholders voted in favor of the acquisition, meeting the approval requirement for the transaction.

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4. 2012Acquisition by Vodafone completes

   Vodafone completed the purchase on 30 July, bringing the business under Vodafone ownership.

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5. 2011Leadership transition follows Jim Marsh’s resignation

   Chairman John Pluthero became chief executive after Jim Marsh resigned from the role.

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6. 2011Gavin Darby becomes chief executive

   The company appointed Gavin Darby, formerly an executive at Vodafone Group, as chief executive.

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7. 2010Cable & Wireless Worldwide is created

   The company was formed on 26 March 2010 from the business retained by Cable & Wireless plc after its international division was separated into Cable & Wireless Communications.

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A business-to-business telecommunications operator focused on network infrastructure and managed communications for enterprises, governments, carriers and resellers rather than mass-market consumer services.

• Managed voice servicesEnterprise telecommunications

  Managed voice formed part of the company’s business communications portfolio. The service was aimed at large enterprises, public-sector organizations and other institutional customers that required externally managed voice infrastructure rather than consumer telephone products. It complemented the company’s data, IP and network offerings.

• Business data and IP servicesData networking

  Cable & Wireless Worldwide supplied data connectivity and IP-based communications services to corporate, government, carrier and reseller customers. These services used the company’s fixed network capabilities to connect sites, support enterprise applications and provide managed communications across its international operating footprint.

• Fibre network servicesNetwork infrastructure

  The company’s fibre network was a central strategic asset in Vodafone’s acquisition rationale. It provided fixed connectivity for business customers and strengthened Vodafone’s ability to offer integrated enterprise communications, including unified communications and network services in the United Kingdom and international markets.

• Carrier and reseller servicesWholesale telecommunications

  Cable & Wireless Worldwide served other communications providers and resellers in addition to end-user enterprises and governments. Its carrier-oriented activities included network and communications services intended to support interconnection, wholesale access and the delivery of telecommunications products through intermediary providers.

• 2013Integrate the company into VodafoneStrategy

  After completing the acquisition, Vodafone sought to combine Cable & Wireless Worldwide’s fixed-line and fibre capabilities with its global enterprise communications business.

  What changed. Vodafone completed the operational integration of Cable & Wireless Worldwide on 1 April 2013.

  Aftermath. Cable & Wireless Worldwide ceased to operate as an independent company, while its assets and capabilities continued within Vodafone.

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• 2012Accept Vodafone’s acquisition offerM&A

  Cable & Wireless Worldwide’s declining share price and enterprise network assets attracted interest from Vodafone and Tata Communications. Tata later withdrew, leaving Vodafone as the sole bidder.

  What changed. The board accepted Vodafone’s cash offer, valued at approximately £1.04 billion, and shareholders subsequently approved the transaction.

  Aftermath. Vodafone completed the acquisition in July 2012 and later integrated the company into its business-services operations.

  Acquisition consideration. Approximately £1.04 billion in cash (Agreement announced 23 April 2012; completion 30 July 2012)

  • Tata Communications — Tata Communications considered an acquisition but withdrew, leaving Vodafone as the sole bidder.
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• 2010Separate the international and enterprise telecommunications businessesStrategy

  Cable & Wireless plc reorganized its operations through a demerger, separating the international division from the remaining business serving enterprise, government, carrier and reseller customers.

  What changed. The retained business was established as Cable & Wireless Worldwide, while the separated international business became Cable & Wireless Communications.

  Aftermath. The new company became an independently listed telecommunications operator, although its standalone performance later led to takeover speculation.

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• 2009Executive remuneration controversyControversy

  Before the 2010 demerger, shareholder groups criticized Cable & Wireless’s executive compensation arrangements. Approximately 38% of shareholders did not support the company’s pay policy at a contentious meeting. Critics also questioned a long-term incentive plan linked to company valuation and a reported £60 million bonus pool for participating executive directors during 2009–2010.

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• 2012Vodafone agrees to acquire Cable & Wireless Worldwide

  Vodafone announced a cash offer valued at approximately £1.04 billion for Cable & Wireless Worldwide after Tata Communications withdrew from the bidding process.

  M&A
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• 2012Shareholders approve Vodafone acquisition

  Cable & Wireless Worldwide shareholders voted in favor of Vodafone’s offer, clearing the required approval threshold for the transaction.

  M&A
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• 2012Vodafone completes acquisition of Cable & Wireless Worldwide

  Vodafone completed the purchase and appointed Nick Jefferey, then associated with Vodafone Global Enterprise, to lead the acquired business.

  M&ALeadership change
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• 2011Cable & Wireless Worldwide appoints John Pluthero as chief executive

  Following Jim Marsh’s resignation, chairman John Pluthero assumed the chief executive role during a period of financial and strategic pressure for the newly separated company.

  Leadership change
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• 2011Gavin Darby appointed chief executive

  Cable & Wireless Worldwide announced the appointment of former Vodafone Group executive Gavin Darby as its new chief executive.

  Leadership change
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1. Cable & Wireless Worldwide