Tata Communications shares gain amid CWW takeover report
Shares of Tata Communications on Thursday soared by about 4% in early morning trade amid reports that the company was looking to bid for acquiring UK-based telecom player Cable & Wireless Worldwide (CWW).
Bucking an overall weak market trend here, Tata Comm shares were trading 3.97% higher at Rs 242 at the BSE at 1015 hours. The stock had touched an early morning high of Rs 244.20 within minutes of opening of the trade.
The market barometer Sensex was trading nearly 195.14 points or 1.1% down at 17,557.54.
While there have been no words so far from either of the two companies, media reports have said that UK-based CWW Plc could soon become a potential takeover target of Tata Communications, formerly known as VSNL and earlier a public sector entity that was acquired by Tatas as part of the government's divestment programme.
While Tata group have undertaken a number of overseas acquisitions in the past, including many in the UK, there have been reports in the recent past that British telecom giant Vodafone might be interested in CWW Plc takeover.
Reacting to Vodafone's interest, CWW had said in a statement last month that its board would make any further announcement as may be required in due course.
Vodafone had also said that it was in very early stages of evaluating the merits of a potential offer for C&W Worldwide.
Tata Communications is also listed in the US at the NYSE and has gained 0.3% last night there to $ 9.45.