Case | HBS Case Collection | July 2007 (Revised May 2008)

Cable & Wireless America

by Guhan Subramanian and Eliot Sherman

Abstract

Describes the auction of Cable & Wireless America (CWA), a bankrupt subsidiary of the British telecommunications company Cable & Wireless. While an initial "stalking-horse" bid valued the assets at $125 million, after a long day and night of bidding between eight groups, the best bid was in the high $60-million range. The sell-side team, comprised of bankers from the Blackstone Group and Greenhill, and lawyers from Wachtell Lipton and Kirkland & Ellis, is forced to regroup and reconsider their options for galvanizing the bidding process. Describes these events in detail, while providing information for students on CWA's history, the nature of Section 363 auctions, and the bidders who were involved in the process.

Keywords: Mergers and Acquisitions; Insolvency and Bankruptcy; Auctions; Bids and Bidding; Negotiation Process;

Citation:

Subramanian, Guhan, and Eliot Sherman. "Cable & Wireless America." Harvard Business School Case 908-004, July 2007. (Revised May 2008.)