Asia Times: NZ Telecom launches takeover bid for Australia's AAPT



	September 16, 1999	atimes.com

Oceania

NZ Telecom launches takeover bid for Australia's AAPT

SYDNEY - New Zealand's Telecom Corp on Wednesday launched a A$1.5 billion (US$970 million) takeover bid for Australia's number three telecommunications company AAPT Ltd.

The offer of $5.10 a share, for a minimum of 40 percent of the company, represents a discount to Tuesday's closing price for AAPT shares at $5.15. Telecom Corp said that the offer would be for all of the AAPT shares that Telecom does not already own. A spokesman for AAPT said the company's board would meet soon to consider the offer.

The bid is backed by months of maneuvering by the New Zealand carrier. The saga began in May of this year when Telecom Corp snapped up 9.9 percent of AAPT for $5.70 a share. One month later the carrier's strategy became clearer when it snapped up a further 10 percent, becoming the majority shareholder with a stake of 19.9 percent.

Then, just last week analysts noted that AAPT appeared to be close to an agreement with Telecom Corp about the future ownership structure of AAPT. They said Telecom was believed to want to increase its stake to 40 or 50 percent but was expected to wait until after Wednesday so it would not be locked into paying $5.70 a share for a further stake in AAPT.

The price currently offered by the kiwi firm is ten cents above the $5.00 per share offered for AAPT by Cable & Wireless Optus Ltd in an aborted bid earlier this year. AAPT fought off the takeover bid by Cable & Wireless Optus. The company's shares hit an all time closing high of $5.80 during the takeover battle which ended when C&W Optus walked away from its bid after regulatory difficulties.

The relationship between the companies should enhance the global competitiveness of both parties and provide operational synergies. These include the joint management of voice traffic, more efficient use of international bandwidth, leverage of common systems and infrastructure, buying power and a broader offering for AAPT's corporate customers. Another possibility is the joint development of the companies' internet operations and the potential for roaming on each companies Code Division Multiple Access (CDMA) networks.

Shares in AAPT on Wednesday morning remained locked at $5.15, steady with its close the day before.

(Asia Pulse)