Vodafone will not walk away from bidding for Britain's Cable & Wireless Worldwide
The sources said that Vodafone would either bid or seek an extension by Thursday's 1600 GMT deadline.
CWW shares, which had fallen as much as 17 percent after Tata walked away, recouped some of their losses and by 1422 GMT were trading down 12.6 percent at 32.48 pence, valuing the company at about 900 million pounds ($1.44 billion).
A string of profit warnings at CWW, blamed on factors including a faster-than-expected drop in voice revenue, intense competition in data traffic and cuts in government contracts, have cost two chief executives their jobs.
But the troubled business telecoms provider's fixed lines could relieve pressure on mobile phone operator Vodafone's wireless network and strengthen its position in the corporate telecoms sector.
($1 = 0.6238 British pounds)
(Reporting by Victoria Howley. writing by Paul Sandle and Georgina Prodhan; editing by Kate Holton)