M2 acquires People Telecom for $17m

M2 acquires People Telecom for $17m

Summary: M2 Telecommunications announced today it will take over People Telecom in a combined stock and cash deal.

TOPICS: Tech Industry

M2 Telecommunications announced today it will take over People Telecom in a combined stock and cash deal.

(Credit: ZDNet.com.au)

People Telecom shareholders would receive 0.0916 M2 Telecommunications shares for every People Telecom share as well as 0.6886 cents in cash. There was also a bonus of 0.344 cents per share for the case that People Telecom's net cash reaches a certain level before the shareholders held a meeting. The offer, valued between 5.46 and 5.81 cents per share, offered People Telecom shareholders a premium on the price of their shares for the 30 days to 3 December 2008 of over 100 per cent.

People Telecom chair Barry Hamilton said the driving force behind the around $17 million takeover was the consolidation of the telecoms industry. "This really isn't driven at all by the current economic crisis," he said. The simple fact was that the companies would have $250 million combined revenues and would do better together than they could alone, he said.

The two companies were a great fit, according to Hamilton, as they were both national telecommunications companies with one having a stronger presence in Sydney and the other in Melbourne. He believed they also complemented each other in the market.

"People, we've been sitting in the small to medium sized business part of the market. M2's had more of an emphasis on the consumer part of the market," he said. M2 also had a stronger wholesale focus than People, he said.

The People Telecom board will recommend its shareholders approve the takeover when the scheme is considered at the company's general meeting in March 2009.

Vaughan Bowen, MD of M2, said buying People Telecom was logical because of the added scale it would bring both companies.

"The addition of People to M2's strongly growing customer base is expected to increase group revenues to greater than $250 million on an annualised basis and is expected to considerably increase consolidated earnings and earnings per share," he said in a statement. The deal is expected to increase earnings per share for the company by 15 to 20 per cent.

Topic: Tech Industry

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • Weeeee

    I hope M2 get rid of People's disastrous pink corporate colour scheme. Every time I visit their website I have to sit in a dark room for half an hour to sooth my optic nerves.

    Other than that People have been a fairly good ISP for me and I hope that M2 don't use it as an opportunity to go Telstra-esque with pricing.
  • @weeeee

    oh look a story about ms/people. but mr impartiality just cant help himself and has to try to denigrate telstra. what a surprise.

    mate i dont particularly like telsra either. but give it a rest, pleeeeease. youre biased comments are becoming more and more (reverse) sydney like in predictability.
  • oops

    oops, before mr perfect mentions my typo (as he has childishly attacked my lower case typing before - some people) the above should read m2 not ms. thank you.
  • Accountability

    What is wrong with holding Bigpond to account for the fact that they are one of the most expensive, if not the most expensive ISP in Australia? It isn't like their service is any better. It isn't like their plans provide for faster speeds (except Cable in Sydney and Melbourne). It isn't like their plans allow larger download quotas.

    I asked in another thread and I will repeat the question here: Ned, who do you connect to the Internet with and why? How much do you pay each month?
  • disgraceful lies mel

    i was going to tell you about my comms here, but flicked over to another zd forum first, to discover that youre obviously nothing more than a blatant liar mel, so nothing you say or have said, can be trusted.

    you were saying over there that you are a spin internet customer? so youve just happened to have changed in the last 2 days then?

    here's what you said above, just 2 days ago

    [* I hope M2 get rid of People's disastrous pink corporate colour scheme. Every time I visit their website I have to sit in a dark room for half an hour to sooth my optic nerves.


    and I hope that M2 don't use it as an opportunity to go Telstra-esque with pricing* ]

    couldn't even get through one comment without that telstra gibe, could you?

    strange, *no talk of being with spin or changing isp's there*? have been, not *were* fairly good for you? *you didnt say, you previously were, or as a former people customer*? then you went on to hope m2 didnt up your prices (yes like the evil telstra). but according to your last comment you aren't a people customer, youre now magically a spin customer? oh, ok then?????????

    so which was the lie, the first or last comment, or both? hard to tell now mel, you have obviously said so many.

    you lie about this and you are probably lying about not having a stake in telstra's opponents or having been sacked by telstra.

    obviously you are such a chronic liar that you are unable to keep track of them all. i think you owe me $20 sunshine : )

    as i said before, no rational human could hold such a grudge against anyone for no reason and you've just been found out.

    lets hear your rational explanation (more lies), rofl.

    even in debate there are ethical guidelines which you have broken.

    therefore *you and your lies do not deserve further acknowledgment. you are absolutely shameful, mel*.
  • umm ned

    all your quote of mel's proves it that he visits M2's website.... I visit internodes all the time looking for better plans and what not, but im with optus, and he expressed the hope that the ISP wouldnt become like telstra... perhaps out of hope for the internet industry not his personal gain?? though Mel, I like your comments, you do pick out the crap that most people miss, but if possible maybe a little easier on telstra? if nothing but to avoid stirring up the s**t storm that usually follows

    and ppl, Mel hates telstra, get over it, I hate telstra too, pick holes in his argument against telstra all you like, but half you attacking him purely because he chose to not like telstra, jeez
  • lol, wait, read that quote again


    anyway, could still only prove that at some point he's been with M2, just as one could say telstra has been a fairly good company for syd's shares
  • no laughing matter - yes it is, lol

    joe, cmon, i understand and thank you for trying to extinguish the fire.

    but being a brazen telstra hater, i'd understand mels insistence to get one up on me, if i were say sydney and all for telstra, but i'm not? which actually seems quite odd to me? and as you perceptively ascertained in the other blog, i'm only doing it now for the reaction/***stake, which really is priceless.

    but regardless of the priceless reaction, mel obviously changes his story and colours the situation to suit the days telstra bashing, which is pretty low and devious, dont you think?.

    now he has been caught out doing so and is probably furiously trying to invent another equally unbelievable (cover up) story.

    but youve given him a few ideas to get him started. rofl.
  • lol, well

    you are currently supporting telstra atm so by getting one up on you he feels he proves his point against telstra... I mean tesltra is an evil coporation, people may argue this, feel free too, but i work for them, (not for long yay! :D) I get the internal intranet releases, hell i did TEE english and got a 92% on an essay bout propaganda, i see exactly what they're doing and it gets me that they would stoop that low, basically, Mel is fighting against a company that has a whole department of 20+ people dedicated to watching the media, preparing press/employee releases and just general spin, of course Mel's going to play dirty, its not as if he's going to be able to win fairly
  • @lol

    sounds like you are feeling sorry for the liar and making excuses joe.

    he is what he is.
  • not really

    I'm just saying i can understand how he feels and his hatred isnt as irrational others say...

    lol, and ned, can i make a point... you say you are unbiased, you make a decision based on the facts you see... perhaps mel does to? different facts, different interpratation, different 'unbiased' opinion

    to say one's unbiased while the other is... well thats a very hard posistion to argue

  • I have TWO connections NEDDYBOY

    Ned, as per the Optus thread where you spewed the same rhetoric I'll reply simply by stating that I have two connections and a picture of my wall mounted modems can be viewed at http://iserv.com.au/photos/modems.jpg

    Ned, you sure know how to make a mug out of yourself. The following saying applied to you Ned - God looks after little children and fools.
  • Truth will triumph.

    Never in the history of constructive journalism (private contribution) has so much rubbish been written as we see from Joe and Mel.

    Joe, you absolutely condemn your self when you reveal that you are employed by Telstra. Talk about biting the hand that feeds you. I would beg Sol to move quickly to remove you from Telstra employ as one bad apple can spread their cancer of hate amongst others.

    Mel, I do not know what drives your pathological hatred for Telstra, suffice to say that it would be logical to assume that you probably have a financial interest in other directions. Mel at times your comments are certainly over the top and outrageous.

    Ned, to rational people you are a breath of fresh air. Extremely fair and balanced, reasonable yet where you consider it of necessity speak with authority and clarity. It is my belief that Australia will triumph when the realisation is established that Telstra is the best option for the NBN build.

    The professional journalists, because of tall poppy syndrome or jealousy ( or maybe just to stir the pot) will at some stage be forced to eat humble pie and admit their transgressions.
  • Take the blinkers off Sydney

    Mr Lawrence, I take it that you now approve of personal abuse, as long as only the pro-Telstra side deliver it? I must admit to being quite surprised. If not then what part of Ned Kelly's most recent comments do you class as a breath of fresh air? He seems content with calling me a liar yet all I did was tell the truth.

    On the other issue you raise I think you need to grow up and put the petty 'hate' allegations to rest. Just because there are people that choose a different ISP to you does not mean they "hate" other ISPs.

    I'll ask you the same question that I asked Mr Kelly - What ISP do you use and what is your monthly download allowance and how much do you pay? Furthermore, if you are paying more for your services than would be the case if you used someone else are you happy with wasting that extra money?

    In finishing, I can accept that not everyone shares my viewpoint. It would be a boring life if we all did the same things. Sydney, I think it is time you took a leaf out of that book.
  • We should live and learn.

    Mr. Sommersburg perhaps in a moment of enthusiasm I did cross the line between gentlemanly debate and unpardonable hostility. It is no excuse but we are all guilty of this at times.

    Your opinions are always accepted but can, in our wonderful free Country, be challenged in a civilized manner. It is only by constructive criticism which is subject to examination by others that enables our society to progress.

    Mel my ISP is Bigpond priced $59.95 per month and is unlimited. I understand that after a certain number the high speed element slows although I have never experienced this happening. Best wishes, as always.
  • thanks sydney

    thank you sydney.

    even though we have locked horns previously, you have the decency to understand my position and respond rationally to me, without having to blatantly lie and then desperately cover up, unlike some who do not deserve reply.

    but if as suggested, you now approve of personal abuse, i can see why. you only have to look at any blog and you are shamelessly attacked for your loyalty to telstra, relentlessly. i should know, i was one of them, but i believe i did so with respect? i will only show disrespect to those who deserve disrespect. but that aside, still you stand up and say as you feel, again without having to resort to any dishonesty.

    funny though, how those who sydney-bash (theres a new one for you) dont like it when they are on the receiving end and then hypocritically want to play the personal abuse card.

    although i agree with some aspects you say sydney, and some your opponents in this debate say, i agree in toto with neither of you. however sydney you at least have my respect for your pugnaciousness and *honesty*.

    so in the final analysis, i tip my hat to you sydney, for you are 100% telstra and not afraid to say so, unlike others who are 100% against telstra, but too small and insecure to admit it.

    rofl, 'm sure mel does have two, as they say

    *no one could be that silly playing with one*.
  • What about the real issue here?

    I'm not sure why this has turned into a debate for/against Telstra and I'm surprised no-one has concentrated on People Telecom, being that's what the article is about after all.

    When PT were still Swiftel, they were one the best ISP experiences I've had. Since People Telecom came on the scene I've had nothing but stress and upset due to overcharges, charges out of nowhere to my credit card without invoice, 40+ min wait times, only to be unable to hear and/or understand their customer service operator, then get cut off, time after time. I feel their underhanded activities that include fraud by deceit and harassment deserves a mention. I'm not alone or just PT bashing for the sake of it (trust me, I've got better things to do), just run a search on the Whirlpool forums if you don't believe me.

    They are, without doubt IMHO, the WORST company I have ever had the displeasure of dealing with. I hope they fold, collapse and rot, soon.
  • little offended...

    Sydney "one bad apple can spread their cancer of hate "... I beleive recently over 50% of union apples voted for a strike? better get rid of them, and If ZDNet's interested in the whole telstra HR issue, I'm happy to send them the centre email, that yesterday (today been 9/12) 40 staff, turned up for work, and then, walked off the job, before 830... they just left, some said they were sick, some just told their supervisor their not dealing with it all today and left...

    And interesting point sydney... I have worked for telstra a yr n a 1/2... I've only been posting negative telstra comments the past 3 months?.. your companies heading in the wrong direction syd, pull your head out the sand
  • Yes, under the Swiftel name they were much better

    One thing that People do, which many other ISPs also do is engage Indian call centres to carry out helpdesk-type tasks for customers. It never goes smoothly, line quality is dreadful and the fake Australian and sometimes American accents is tacky to put it as politely as I can.

    I've never spoken much about this in the past because I rarely have the need to ring but for those that ring more often I fully understand the frustration they experience.

    Because more ISPs favour Indian call centres than otherwise us poor customers have few options to deal with the problem.

    I often read Whirlpool and customer service and the ability of ISPs to confront problems raised by customers instead of the customers themselves is the cause for the largest number of threads being opened there. Whilst some customers are just deadbeats who just want everything their own way but I would say that most customers have genuine grievances which ISPs should be addressing in better ways than they currently do.
  • Sure!

    Sure! We'd love to see that email, we have done a lot of reporting on the Telstra union issue. You can get us at edit@zdnet.com.au. We'll keep everything confidential etc.


    Renai LeMay
    News Editor