Vodafone will purchase Cable & Wireless Plc for 38 pence a share in a deal that has been promoted by the directors of Cable & Wireless.

The acquisition of Cable & Wireless will provide Vodafone with an additional mobile fixed-line network as well as increasing Vodafone’s business users. At present the main shareholder, Orbis Holdings Ltd, have yet to agree on the terms of the purchase.

The agreement came about as Tata Communications (TCOM) pulled out of the bidding for Cable & Wireless after failing to settle on a price. Vodafone Chief Executive Officer Vittorio Colao, said “The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the U.K.”