Vodafone has confirmed that it is in talks with Cable & Wireless Worldwide (CWW) with a view to acquiring the beleaguered comms firm for an as yet undisclosed sum.
The firm has struggled to perform since its March 2010 inception, but according to speculation in the Sunday Times could be worth up to £700m, a premium of over £120m on its market cap last week.
A private equity buyer is also thought to be kicking the tyres, the paper said.
In response to the reports, Vodafone issued a brief statement early on Monday 13 February.
The firm said it "regularly reviews opportunities in the sector and confirms that it is in the very early stages of evaluating the merits of a potential offer for CWW".