International cable TV company Liberty Global says it is acquiring Cable & Wireless Communications, a London-based telecommunications company with operations in the Caribbean, for stock and a special dividend worth $5.3 billion.
Liberty Global, which is controlled by billionaire John Malone, said it would fold Cable & Wireless into its LiLAC business unit, which it spun off with a tracking stock in July. Combined, the entities will have 10 million subscribers of video, broadband Internet access, and fixed and mobile phone service.
Liberty's offer amounts to 78.04 pence ($1.23) per share plus a dividend of 3 pence per share. The total is 11 percent above the average price of Cable & Wireless stock last week, and 40 percent above its closing price on Oct. 21, the day before Cable & Wireless announced it was in talks to be acquired by Liberty.