MUMBAI -(Dow Jones)- India's Tata Communications Ltd. (500483.BY) has decided to make a formal cash offer to buy the U.K.'s Cable & Wireless Worldwide PLC, a person familiar with the development said Tuesday.

The Tata Group company is likely to raise short-term debt of upto $2 billion to fund the potential acquisition, the person, who asked not to be named, told Dow Jones Newswires.

The person added that while the company has received commitments from banks for raising the funds, final documents haven't been signed as yet. Also, it isn't clear in what form the debt will be raised.

Earlier this month, the Indian communications major became the second company after Vodafone Group PLC (VOD.LN) to express an interest in buying Cable & Wireless Worldwide, saying it is evaluating a possible cash offer for the British fiber-optic network operator.

The process is at a "very preliminary stage," Tata said in a March 2 filing with the U.K. Takeovers Panel.

Tata Communications, which provides internet services and undersea cable landing systems, has until March 29 to announce whether it intends to make a bid or walk away from the deal, according to the U.K.'s mergers and acquisition rules.

--By Kenan Machado, Dow Jones Newswires; +91-9967586928; romit.guha@dowjones.com