Last week, it was reported that there were two serious bidders for Telecom's struggling Australian division, AAPT - acquisition-hungry, relatively cash-rich TPG, and the tiny Amcom Telecommunications.Both had apparently been given a week to submit final b
Last week, it was reported that there were two serious bidders for Telecom's struggling Australian division, AAPT - acquisition-hungry, relatively cash-rich TPG, and the tiny Amcom Telecommunications.
Both had apparently been given a week to submit final bids - although the industry rumour was that both were given more time.
Today, The Sydney Morning Herald has reported that Amcom has dropped out.
TPG is still in the running, but its enthusiasm for a deal has been diminished by concern over a key backhaul deal AAPT has with Telstra.
At Telecom's annual result briefing, chief executive Paul Reynolds bragged that a better wholesale deal negotiated with Telstra had boosted AAPT's ebitda.
But TPG is said to be concerned that Telstra has the power to jack up rates when the backhaul deal rolls around for renewal.
Telecom bought AAPT for $A2.3 billion at the height of the dot.com tech boom. It subsequently bought wholesale specialist PowerTel for $A357 million in 2007, folding it into AAPT.
Analysts spoken to by NBR put its present-day value at four times ebitda, or around $A400 million.
Telecom shares (NZX: TEL) closed yesterday down three cents to $1.95.
