Vodafone's bid for Cable & Wireless Worldwide is likely to be approved at a shareholder meeting on Monday after rebel investor Orbis said it would now back the deal.
CWW said it had received acceptances worth 58.77% in favour of the 38p a share offer, prompting Orbis to withdraw its objections. Under the scheme of arrangement Vodafone needs 75% approval from shareholders.
Orbis, which owns 19.06% and is the company's largest shareholder, had opposed the deal on the grounds the price was inadequate, and had suggested it might seek to remain as a minority stakeholder.
But following news of the level of acceptances and discussions with CWW, Orbis said:
We now believe the scheme of arrangement will eventually succeed, even if Orbis were to vote against it. In these circumstances our opposition would only serve to prolong the process because the company would likely adjourn [Monday's] meeting to secure the necessary votes. This is not in the interests of any CWW stakeholder. Accordingly, Orbis intends to vote in favour.
CWW shares are up 2.76p to 37.79p while Vodafone - which said on Friday it would not change the terms of its offer and would let the bid lapse if it did not get the required backing - is down 0.6p at 173.1p.
