Telstra fails to sell NDC

Telstra has taken Network Design and Construction off the auction block, after offers from potential purchasers failed to measure up to the telco’s expectations.

SYDNEY (ZDNet Australia)--Telstra has taken Network Design and Construction off the auction block, after offers from potential purchasers failed to measure up to the telco’s expectations.

The intention to get rid of NDC, with about 6,000 workers, was announced in March 2000.

The failed sale comes hot on the heels of the slashing of Telstra's earnings growth forecasts for 2000/20001.

“Telstra considered all purchase offers but none measured up to our strategic objectives,” the telco giant said in a statement.

“NDC remains a business with strong expertise in a specialized field. It will continue as a wholly-owned subsidiary of Telstra and operate as an independent design and construction business servicing Telstra and other telecommunication carriers, as well as undertaking construction work outside the telecommunications sector.”

Although Telstra’s long-term strategy does not include direct participation in network design and construction, it said it will continue to encourage the development of a competitive contractor industry in Australia.

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