Vodafone 'Evaluating' Cable & Wireless Bid

Vodafone Group PLC is considering a takeover bid for embattled U.K. telecommunications provider Cable & Wireless Worldwide PLC.

Vodafone said it "regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer" for C&W Worldwide, but cautioned that there is no certainty an offer will be made. Any offer would likely be in cash, the company said. Analysts say such a deal could improve Vodafone's network quality in the U.K. and support its corporate business world-wide. C&W Worldwide owns the U.K's biggest fiber network dedicated to businesses. It also has an international cable network that reaches across Europe, India and throughout Asia. But it has had a tough time since its spinoff from parent Cable & Wireless PLC in 2010, suffering a sliding stock price and management changes. Under U.K. takeover rules, Vodafone is required to either make a firm offer for C&W Worldwide or walk away by 5 p.m. GMT on March 12.