Report: Pacnet bidding for AAPT

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. It, however, decided to keep the subsidiary, and bulked up its operation with the acquisition of smaller Australian telco Powertel.