|
Tuesday 2nd December 2008 |
Text too small? |
Pacnet, formed from the merger this year of Asia Netcom and Pacific Internet planned to finance the offer with cash and equity, Reuters reported, citing a person close to the situation.
The report is "purely speculative" and Telecom remains committed to AAPT, spokesman Mark Watts told BusinessWire.
AAPT has battled Telstra, Australia's biggest telco, and Optus, the local unit of Singapore Telecommunications, for market share. Telecom has slashed the value of the business by more than $2 billion to $270 million sionce acquiring AAPT in 1999.
Reuters said Pacnet was interested in AAPT to complete its Asia-wide reach prior to a potential IPO next year.
Telecom has predicted little profit growth in the next few years because of increased investment in infrastructure, intense rivalry with competitors such as Vodafone Group. Costs have risen after the government ordered Telecom to separate its wholesale and retail divisions to foster more competition.
No comments yet
Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal
