Pacnet bidding for AAPT: report

Pacnet bidding for AAPT: report

Summary: Asia-Pacific telco Pacnet has offered Telecom New Zealand US$420 million for its Australian subsidiary AAPT, according to Reuters.

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Asia-Pacific telco Pacnet has offered Telecom New Zealand US$420 million for its Australian subsidiary AAPT, according to Reuters.

Citing sources, Reuters reported this morning that Pacnet wanted to buy the telco, Australia's third-largest, to round out its broader Asia network as it examined the possibility for an initial public offering in the near future.

In 2006 Telecom New Zealand conducted a strategic review of AAPT, which included the option to sell the business, however it decided to keep the subsidiary, instead bulking up its operation with the acquisition of smaller Australian telco Powertel.

When contacted on the matter, Both Telecom New Zealand and AAPT told ZDNet.com.au that they did not comment on speculation.

"We're fully committed to the business," a spokesperson for Telecom New Zealand added.

More to follow.

Topics: Telcos, AAPT, Tech Industry

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3 comments
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  • More jobs to go

    This is the same company which cut 22 jobs in Australia this month and whose Australian Management said, when they were caught out, that the job cuts were to "save a few dollars in hard economic times" and then they put out a huge bid like this the month after ...... who are they kidding ?

    This is most likely hype as they get no connectivity savings buying into AAPT to drive down costs as have no cables coming to Australia (they buy from Telstra etc) and no real depth of Telcom experience in their management ranks to run this sort of operation.

    The only possible way they would save money in buying AAPT would be to fire the overlapping staff with PacNet and outsource everything else to Malaysia.
    anonymous
  • House of Cards

    With PacNet relying on private equity funding to pay for their huge cable investments and prop up their losses it is unlikely they have the cash to buy AAPT. An equity deal makes sense but Telecom NZ would be banking on their shares in PacNet soaring in value.

    This is more likely hype to build up their paper valuations as PacNet was rumored to be in a deal to sell out to a major South Asian telco. The CEO has been seen in India along with their key investors several times in the last month or two.
    anonymous
  • Caught Out Fibbing

    It is good to look back some time and see how some places spin their PR ... as other sources commented this whole bid for AAPT was a PR exercise to get PacNet and their CEO more exposure.

    The CEO's passion for the press is well known and if there is no real news then simply invent something !

    FInally Telcom NZ has spoken out this week in NZ's Dominion Post article:

    Telecom chief executive Paul Reynolds said suggestions Asian telco Pacnet might acquire Telecom's Australian subsidiary AAPT should be taken with a pinch of salt.

    Pacnet chief executive Bill Barney said Pacnet was interested in acquiring AAPT, but felt the valuation of Australia's No3 phone company had come down since December, when it reportedly offered A$420 million (NZ$520m) for the company.

    Mr Reynolds told The Dominion Post no offer had been made for AAPT.

    "Pacnet are trying to buy telcos on four continents, yet no-one has ever heard of them."

    Mr. Barney ... please blush just a little !
    anonymous