Telstra in Final Talks for MobileOne Stake,
AFR Says (Update1)
By Tracy Withers
Sydney, Jan. 12 (Bloomberg) -- Telstra Corp. is in final negotiations to
buy 15 percent of MobileOne Asia Pte, Singapore's No. 2 mobile phone
company, the Australian Financial Review reported, citing unidentified
investment banking sources.
Australia's largest phone company is preparing to pay A$500 million
($281 million) to buy the stake in MobileOne from the U.K.'s Cable &
Wireless Plc, the newspaper reported. Telstra declined to comment on
the report.
``We don't comment on speculation,'' said Catherine Payne, a Telstra
spokeswoman.
Cable & Wireless and Pacific Century CyberWorks in Hong Kong jointly
own an estimated S$1 billion ($580 million), 30 percent stake in
MobileOne, or M1. CyberWorks wants to retain its interest, and bringing
in Telstra would meet both companies' strategy to build a network of
mobile phone service operators across Asia, the newspaper said.
Heng Hock Mui, a spokewoman for MobileOne, and Joan Wagner, a
spokeswoman for CyberWorks also declined to comment.
Telstra owns 60 percent of Cyberworks' mobile telephone business.
Potential bidders for the M1 stake also need the approval of M1's two
other shareholders, Singapore Press Holdings Ltd. and Keppel
Telecommunications & Transportation Ltd. Both companies, which own
the remaining 70 percent of M1, have the first right of refusal on the 30
percent stake.
Singapore's Straits Times reported Monday that Orange Plc, Europe's
No. 2 cell phone company, may buy 30 percent of M1. France Telecom
SA, which owns Orange, denied the report.
(The Australian Financial Review 1/12)
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