Update: In a stock exchange filing, Tata Communications has informed that it made an announcement on March 1, 2012, in accordance with the UK City Code on Takeovers and Mergers (“Code”) confirming that as part of its on-going review of potential acquisition opportunities, it is evaluating a possible cash offer for Cable & Wireless Worldwide Plc (“CWW”). The Code requires TCL to make a public disclosure of its intentions under certain circumstances. The company has said that it would like to emphasize that considerations are at a very preliminary stage and there can be no certainty that an offer will be made. A further announcement in respect of this matter will be made by the company in due course.

Earlier: Tata Communications is preparing to bid for Britain’s Cable & Wireless Worldwide, reports The Times of India. Citing sources who directly briefed them on the matter, the report states that the deal is expected to happen in the next two weeks and that the British telecom company may attract valuation of around $1.2 billion.

Tata Communications is the second company to announce its intentions to place a bid on Cable & Wireless Worldwide Plc, following Vodafone, which had also announced in February that it was considering bidding for the British telecom company to improve its network in the UK and to also suffice its Internet-hungry customers.

This deal is expected to help Tata Communications gain a larger footprint in voice and data carrier businesses and in the undersea cable network.  Headquartered in Bracknell, United Kingdom, Cable & Wireless Worldwide was created in March 2010 in a demerger from its parent company Cable and Wireless plc and was listed as a public company on the London Stock Exchange. It currently specializes in providing communication services including voice, data and IP based services and applications to large corporates, governments, carrier customers and resellers across the UK, Asia Pacific, India, Middle East & Africa, Continental Europe and North America. It also owns 4,25,000km of undersea cables connecting more than 150 countries.

That being said, Cable & Wireless’ share price has fallen by more than 70% in the last two years is currently clocking a revenue of £2.2 billion (Rs 172.28 billion) with one-third of the revenues coming from carrying internet and voice traffic for other telecom companies.