Vodafone's Latest Deal Fuels Further Earnings Growth, Dividend Support

As a Vodafone (VOD) shareholder, I think that Vodafone's takeover of Cable & Wireless Worldwide (CBWWF.PK) this week for 38 pence ($0.51) per share in cash -- valuing the company at roughly £1bn ($1.6bn) -- represents excellent value. Vittorio Colao, chief executive of Vodafone, commented: We are pleased to reach agreement with the board of Cable & Wireless Worldwide, who unanimously recommend our offer. The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the U.K. communications market and brings attractive cost savings to our U.K. and international operations. Not only that, the acquisition should see earnings growth revitalized in the U.K. and support its dividends going forward. Here's why: 1. Cable & Wireless Worldwide's U.K. fiber network Until now, Vodafone lacked a fixed-line presence in the U.K., its only major European market not to have such a network. The transaction will give... Read more