Tata Communication secures funding for C&W bid
Duvvuri Subbarao, governor of the Reserve Bank of India, spoke extensively to NDTV Profit about the thinking behind the rate cut, and what to expect going forward.
Tata Communications Ltd has secured bank financing ahead of an April 19 deadline to decide whether to make a bid for London-listed Cable & Wireless Worldwide, Thomson Reuters publication Basis Point reported on Wednesday.
The size of the loan has changed from the originally intended $2 billion, the report said, but it is not clear if it has increased or decreased, the report said, citing sources familiar with the situation.
Tata Communications is competing with mobile phone giant Vodafone Plc on the bid for C&W Worldwide. Both have time up to Thursday to decide whether to make a bid to seek further extension..
Mumbai-listed Tata Communications has received underwritten commitments from five banks: Standard Chartered Bank, ANZ, DBS Bank, ING Bank and State Bank of India, the report added.
StanChart and Morgan Stanley are M&A advisers to Tata Communications, but Morgan Stanley is not providing funding, the report added.
Basis Point previously reported the loan at $2 billion with a life of 30-36 months. Pricing on the loan is expected to be more than 375 basis points.
Copyright @ Thomson Reuters 2012