TNZ moves closer to AAPT
- 05 November, 1999 12:01
Telecom New Zealand is one step closer to its goal of taking over AAPT with its purchase of Cable & Wireless Optus' 10.6 per cent stake in the telco.
TNZ now owns around one-third of AAPT, 10 per cent short of the 40 per cent stake required to take a controlling interest.
A CWO spokesperson has said that, having purchased the shares at $4.85 and selling them to TNZ at $5.10, it was an instance of Optus "winning business" and taking "considerable strides" in the telecommunications marketplace.
Ironically, when CWO initially offered to buy AAPT shares at $5.10, AAPT's CEO Larry Williams argued the share price did not reflect the standing of the company at the time.
The acceptance of TNZ's offer follows a block from ACCC, believing AAPT to be a "vigorous and effective competitor", whose removal would raise issues under the Trade Practices Act.
"We no longer require a strategic stake in AAPT," explained Norman Gillespie, deputy chief executive of CWO.
Telecommunications analyst Paul Budde, said earlier this year a merger between AAPT and TNZ would be an ideal combination.
"For TNZ, the [New Zealand] market is far too small," Budde said.
"They have exhausted what they can there. From their point of view [the merger] is very understandable and acceptable," Budde told Computerworld Today.
"It's the fit. AAPT and TNZ fit - AAPT and Optus were competitors," he said.
AAPT, who has secured second place behind Telstra in the long distance telecommunications market, declined to comment.