Vodafone Values Optus Mobile Phone Assets at A$11 Bln, SMH Says
By Mathew Carr
Sydney, Jan. 3 (Bloomberg) -- Vodafone Group Plc has offered A$11 billion ($6 billion) for the mobile phone assets of Cable & Wireless Optus Ltd., with both companies prepared to work together to overcome antitrust concerns, the Sydney Morning Herald said.
Vodafone's bid is part of a A$17 billion offer for the mobile, data and cable assets of Australia's No. 2 phone company, the paper said, without citing sources.
Optus spokesman Steve Wright described the report as ``speculative,'' while Germaine Graham, a spokeswoman at Sydney- based Vodafone Pacific declined to comment.
Last month, Vodafone, the world's largest mobile phone company, agreed to spend $6.3 billion on acquisitions in Ireland and Japan. Buying Optus would help Vodafone, which already owns Australia's No.3 cellular phone network, better compete with the country's biggest phone company, Telstra Corp.
Australia's antitrust regulator, the Australian Competition and Consumer Commission, may object to a Vodafone purchase of Optus unless the U.K. company sells part of its mobile phone business in Australia, according to analysts. ACCC Chairman Allan Fels wasn't immediately available to comment.
Vodafone would sell one of its mobile networks and about 1 million wholesale customers to help appease the ACCC's concerns, the report said. The offer values Optus's mobile customers at A$3,600 each.
A merger between Vodafone and Optus would also pave the way for the U.K. company to sell shares to the public in its Australian unit in 2001, the newspaper said.
`Sensitive Information''
Vodafone offered A$5 billion for Optus's corporate data business and A$1 billion for consumer and multimedia operations. Cable & Wireless Plc, 53 percent shareholder in Optus, would buy back the data business, and another buyer would be found for the multimedia unit, the newspaper said.
Vodafone is willing to pay top dollar for the Optus assets, since the acquisition would give Vodafone its best chance of becoming the No.1 mobile operator in the market, the report said. A larger market share will give Vodafone a stronger bargaining position with handset manufacturers.
Separately, the Australian Financial Review reported without citing sources that the two companies have reached agreement to exchange ``commercially sensitive information'' as Vodafone reviews Optus's books.
Last month, the Australian newspaper reported Vodafone offered at least A$18 billion for Sydney-based Optus. Telecom Corp. of New Zealand, NTT DoCoMo Inc. and Singapore Telecommunications Ltd. are other likely bidders for the assets.
Optus shares yesterday rose 2 cents to A$3.74.
Chase Ord Minnett, a unit of J.P. Morgan Chase & Co., is advising Optus. Merrill Lynch & Co. is advising Cable & Wireless Plc. Vodafone is being advised by Goldman, Sachs & Co.
(Sydney Morning Herald, 1/3, p. 17) |
