Shares in Cable & Wireless Worldwide shot up 18% today as Tata Communications of India said it may make a rival offer to the near-£1 billion bid from Vodafone.
The unexpected emergence of a potential battle for control of the UK's largest business-facing fiber network sent CWW's share soaring 5.02p to 32.89p - their highest level for six months.
Tata Communications said it was evaluating a cash bid for CWW but emphasised that its was at a "very preliminary stage" of considering making an offer.
Under Takeover Panel rules, it has until March 29 to make up its mind while Vodafone has until March 12.
Tata is no stranger to making large acquisitions in the UK. Parent company Tata Group bought steelmaker Corus for £13.1 billion in 2007 and Jaguar Land Rover for £12 billion in 2008.
It is being advised by Standard Chartered, the emerging markets bank which is also handling the
£1.2 billion sale for Cove Energy.
CWW merely said th at it noted Tata's interest, and advised its shareholders to do nothing.
Shares in CWW had lost more than 70% of their value in the less than two years since it demerged from the international business Cable & Wireless Communications. It has also lost two chief executives in the last year with the latest, John Pluthero, departing after just six months in charge having issued a series of profit warnings.
Analysts believe several private-equity firms are also looking at CWW.
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