Rod Snodgrass is one of three Hutchison directors culled as the merger - and with it Telecom’s stake in the company that will trade as Vodafone Australia - is finalised. The composition of the board still throws up some intriguing links.

The ACCC says it will not oppose the merger of 10% Telecom-owned Hutchison Telecommunications and Vodafone Australia, which will trade as Vodafone, and likely compete with Telecom’s AAPT. We’re through the looking glass.

Under the 50/50 joint venture deal, Telecom’s 10% stake in Hutchison will convert to a 5% stake in the combined company, which will immediately become Australia’s third largest telco behind Telstra and Optus, with six million customers, 27% market share and revenue of $A4 billion.

Telecom (NZX: TEL) has confirmed, for the first time, that it will hold its 10% stake in Hutchison Telecommunications as it merges with Vodafone’s Australian operation.

Under the 50/50 joint venture deal, which is due to close in June, Telecom’s 10% stake in Hutchison would convert to a 5% stake in the combined company.

Who loves ya, Vodafone? Telecom chief executive Paul Reynolds says the merger of Vodafone and Hutchison’s Australian subsidiaries, creating new telco VHA, is a “value-enhancing deal”.

VHA's ebitda is projected to be $A2 billion during its first 12 months of operation.

Speaking at Telecom’s Q2 announcement today, Dr Reynolds said he expected there would be “good synergies” from Vodafone Australia and Hutch - operator of the "3" mobile network - combining their operations.

Selling its 10% stake in Hutchison would extricate Telecom from an awkward ménage a trois with Vodafone, but mean a huge loss on its original investment. PLUS - Double the Telecom intrigue: does the new Aussie telco have AAPT in its sights?

As Telecom stumbles toward a response, one analyst says its stake in VHA would definitely appreciate, with the new company’s ebitda projected to be $A2 billion during its first year of operation. But he sees little strategic reason for our national telco to retain a holding in Vodafone Australia and Hutchison’s joint venture.

“If Telecom doesn’t sell its 10% Hutchison stake within the context of this deal then I think they will hang on to it to see if it will increase in value,” Australian-based telco industry analyst Paul Budde says.