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‘Proposed Acquisition of CWW by Tata Communication’ Suggestions for Tata Group for Go or No-Go

Tata Communications Ltd (TCL) is an India-based telecommunications company and intends to propose acquisition to Cable and Wireless Worldwide, which has been receiving considerate attention due to significant involvement of two large firms into large acquisition (Buckley, 2012). Considering the proposed acquisition of Cable and Wireless Worldwide by Tata Group, it is observed that if this acquisition occurs, it will be the biggest acquisition by any Indian firm ever specifically in the UK. Tata owns one of the largest undersea cable networks in the world whereas undersea cables of Cable and Wireless Worldwide are approximately£650 million (FinancialReview, 2012). In addition to this, CWW possesses one of UK’s biggest fiber optic networks and cable network running around the Atlantic Ocean, through Europe to India. However, the company has been striving hard with low earnings and number of changes of top executives. It is further found that in two years, it lost around seventy percent of its market value recently (WERDIGIER, 2012). Get homework help from professional writers.

 

If Tata Group acquires the CWW, it will be able to reserve the high-speed telecom services to offer its customer-base market in India and outside India. There could be certain issues related to this acquisition, which is required to be considered before going for acquisition. Tata Communication Ltd. is an India-based telecommunication firm, while CWW is UK-based firm offering nationwide communication solution to its customer-based (Rao/PTI, 2012). Moreover, Tata Group has already been known for possessing the Jaguar Landrover in the UK. The acquisition of CWW may bring about great opportunity for Tata Group to enter into UK telecommunication market-base. If Tata Group decides to acquire CWW, it will potentially have major benefit in respect of its investment. It will be able to equalize its investment in the wireless cost by getting the return on the same domain, as Tata Group is likely offer large business for CWW along with a suite of wire line-based telephone, data, and hosting services (Buckley, 2012).


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