Soul and Pipe Networks do deal?

Soul and Pipe Networks do deal?

Summary: Pipe Networks and SP Telemedia have both gone into a trading halt this morning, pending announcements to be made later in the week.

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TOPICS: Telcos, TPG
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Pipe Networks and SP Telemedia have both gone into a trading halt this morning, pending announcements to be made later in the week.

Pipe Networks said it had been pitched something it needed to consider. "The trading halt is requested pending an announcement to the market in connection with a proposal received by PWK which the company needs to review and give full consideration," the company said.

Soul Telemedia did not give a reason for its halt.

ZDNet.com.au asked Pipe Networks CEO Bevan Slattery if he could deny a connection between the two trading halts. He declined to comment. SP Telemedia did not return requests for comment.

Pipe has over a million metres of fibre network, bringing capacity to customers in the central business districts and metro areas of Sydney, Melbourne and Brisbane. It has just reaped the rewards of its efforts to build a Sydney to Guam cable. The cable recently went live and is now serving capacity to customers.

Soul Telemedia increased its scale last year with the acquisition of TPG, giving it a large footprint. TPG is a customer of Pipe Networks. Pipe also serves other ISPs such as Primus and iiNet.

Topics: Telcos, TPG

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.

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Talkback

4 comments
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  • TPG SOT PWK

    This will deliver a real competitive alternate and lean telco. The consummer cannot loose with this troika. Teoh is a remarkable navigator and helmsman whilst Slattery has great vision and foresight. Pray it goes ahead.
    anonymous
  • TPG not all it's cracked up to be

    TPG is a budget ISP though - with high contention ratios to subsidise their low costs. Trying to use their service during peak periods is very much a hit and miss affair: frequent slowdowns and even dropouts (on ADSL2+) don't really make it the ideal ISP for all users. Perhaps those who don't mind intermittent Internet access - but certainly not business users or even serious consumers.
    anonymous
  • Hold on There Nelly.

    Don't assume that announcement means merger / acquisition.

    The two companies may be getting into bed together, but it's highly unlikely they'll be getting married, I don't see a lot in the way of synergies there and I suspect neither party has the free capital to consider a purchase of that size.

    That's without taking into account the culture clash and the fact that SOT is still reeling from it's last few acquisitions.

    Sit tight and expect a positively boring announcement on Friday.
    anonymous
  • synergies, what a buzz word !

    seems to me these 2 networks would be a great fit. I agree there could be a culture clash but could hardly say SOT is reeling, check their performance over the last 12 months and it's better than most.
    I also agree that merger might be jumping the gun. The future looks bright for both so i can't imagine either one wanting to sell now, though I Wonder if anyone's racked up significant levels of debt recently. I Hope PWK reap the benefits of PPC1 and anyone who's prepared to support them, maybe a long term engagement.
    anonymous