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Vodafone to Take Four Years to Integrate Cable and Wireless Worldwide Subsidiary
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Vodafone says that it will need to invest over US$800 million in its recently acquired Cable & Wireless Worldwide (CWW) subsidiary over the next four years. However, the return on the investment will also be higher than originally expected when Vodafone bought the company.
Vodafone bought the UK based landline and submarine cable operator in July for US$1.7 billion.
The company now says that it expects to see cash flow synergies of US$200-250 million a year by March 2016 and will deliver free cash flow of $350-$450 million per year.
The $800 million investment though is needed as CWW had been starved of investment over the past few years although around 60% of the investment will go on integrating Vodafone systems with CWW.
During the investment, the company will retain its CWW brandname.
"We need to fix some things before we're happy to put our logo above the front door," the company's UK Chief Executive Guy Lawrence told Reuters at an investor event.
CCW was spun off from the mobile division in 2010.
On the web:Reuters
Tags: [vodafone] [cable & wireless worldwide] [UK]
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