Cable & Wireless Worldwide Company History and Future

Cable & Wireless Worldwide has a rich history that spans over 150 years. The company was formed in 1868 as the Eastern Telegraph Company, with the goal of laying a telegraph cable across the Atlantic Ocean.

In 1880, the company laid the first telegraph cable across the Atlantic, revolutionizing global communication. This achievement marked a significant milestone in the company's history.

The company's name was changed to Cable & Wireless in 1920, reflecting its expanding operations in the wireless telegraph industry. Cable & Wireless continued to innovate and expand its services, laying the foundation for its future success.

Today, Cable & Wireless Worldwide is a leading provider of communications and IT services, with a global presence and a commitment to delivering high-quality solutions to its customers.

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Cable & Wireless Worldwide was formed on 26 March 2010, following the demerger of Cable & Wireless plc's international division.

The company's split from Cable & Wireless plc led to a temporary increase in the number of firms listed on the FTSE 100 Index, which held 101 firms before Cable & Wireless Communications dropped to the FTSE 250 Index.

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CWW's shares initially reached a high of 98.5 pence after the split, valuing the group at $4.25 billion.

However, the shares later fell to 13 pence in November 2011, sparking speculation about a potential takeover.

Jim Marsh resigned as CEO on 28 June 2011, and John Pluthero took over as Chairman and Chief Executive.

Gavin Darby was appointed as the new chief executive on 14 November 2011.

Vodafone acquired Cable & Wireless Worldwide for £1.04 billion on 23 April 2012, after Tata Communications Ltd. withdrew from the bidding process.

Vodafone's acquisition gave the company access to CWW's fibre network for businesses, enabling it to expand its enterprise integration service offerings in emerging markets.

The purchase was completed on 30 July 2012, and Nick Jefferey, a former CWW employee, was appointed as CEO of CWW.

Cable & Wireless was fully integrated into Vodafone on 1 April 2013.

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Cable & Wireless Worldwide shareholder Orbis Investment Management has changed its stance on Vodafone's bid, deciding to back the deal after initially opposing it.

Orbis had been holding out for a higher price, but the company's 19% stake in CWW is now expected to vote in favour of the scheme at the meetings today.

The investment fund's decision comes after receiving proxy votes that were overwhelmingly in support of the deal, with nearly 99% of votes cast in favour, representing nearly 60% of all CWW shares.

This has tipped the scales in Vodafone's favour, with the company's offer now expected to succeed even if Orbis were to vote against it today.

Vodafone is paying 38p a share, which is 2% less than the company's average price over the past 12 months.

The deal is expected to create the second largest telecoms group in the UK after BT, and will give Vodafone the capacity to carry more mobile internet traffic at a lower cost.

The company's fibre-optic cables, one of the largest British owned networks with 20,500km of lines, will be a major asset for Vodafone.

Orbis had initially complained that the deal did not "reflect the value" of CWW, but the company's share price has collapsed following a series of profit warnings.

The previous management under chairman John Pluthero struggled to digest a series of acquisitions and compete for corporate clients with BT.

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Cable & Wireless Worldwide went through a significant restructuring process, which led to a major overhaul of its business. This was largely due to the company's acquisition of NTL in 2006, which added significant debt to its balance sheet.

The company's revenue had been declining steadily since 2007, with a 22% drop in revenue in 2010 alone. This decline was largely due to the increasing competition from other telecommunications providers.

In 2011, the company announced a major restructuring plan, which included the sale of its UK and Ireland businesses to Six Telecoms, a subsidiary of Six Telecommunications. This sale was a major step towards simplifying the company's operations and reducing its debt.

The company's future looked uncertain as it struggled to stay afloat amidst intense competition and declining revenue. However, the sale of its UK and Ireland businesses marked a significant turning point for the company, allowing it to focus on its core business and reduce its debt.

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