Telemedia bid war heats up

Friday 29th June 2001

By Campbell McIlroy

The bidding war for Chris Jones' Telemedia heated up this week with Morel & Co and FR Partners facing off against each other for the company's Australasian assets.

Receiver Grant Graham from Ferrier Hodgson would not comment on who had submitted bids or how many had been received but did confirm indicative bids were due last Friday.

It is believed three bids have been received by Ferrier Hodgson in New Zealand and an announcement could be made as early as next week.

The local bids will be considered by Ferrier Hodgson's Auckland office, which will then make recommendations to the Sydney office where the final decision will be made.

Jenny Morel, principal of investment banker Morel & Co, confirmed her company had submitted a bid last Friday and said progress was being made with the receivers on the bid.

Ms Morel would not reveal the number or identity of the investors behind her company's bid.

Mr Graham said the level of interest in the company was a good indication people thought there was still value in Telemedia.

"The good news is someone will end up buying it - the question is who. We are just working through the bids but the final decision will be made in Australia," he said.

Meanwhile, an anonymous email has been circulating questioning the sale of Telemedia subsidiary Phoenix Technologies, which Telemedia bought in the US in March last year for $US21 million.

Phoenix is not itself in receivership but the directors are understood to be considering offers for the company, including one from previous owner Warren Mattingly.

Any proceeds from the sale would be returned to the creditors' pool.

Suggestions a sale had already been negotiated at a massive discount were dismissed out of hand by the receivers.

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