International Telstra Unit May Lead To Acquisitions
Ben Power
03/28/2001
Australian Financial Review
Page 11
Copyright of John Fairfax Group Pty Ltd
Telstra Corp has announced the formation of a new
international unit to spearhead its Asia-Pacific
expansion, prompting speculation the carrier is seeking
Asian acquisitions outside its existing relationship with
Mr Richard Li's Pacific Century CyberWorks .
The restructure comes a day after Singapore
Telecommunications launched a bid for Cable &
Wireless Optus' operations to form the region's biggest
mobile phone operator with a presence in five countries
and a comprehensive data network across Asia to rival
the Telstra/PCCW alliance.
While the chief executive of Telstra, Dr Ziggy
Switkowski, said the announcement had no connection
whatsoever with SingTel's bid for C&W Optus, the
region is set to become the primary battleground for the
competitors over coming years.
The new Hong Kong-based unit, Telstra International,
will be led by the head of the company's Australian
mobile phone business, Mr Dick Simpson, and will
incorporate its Asian joint ventures with PCCW and
operations in Vietnam, India, Singapore, New Zealand,
Japan and Sri Lanka.
Mr Simpson, who will effectively become the company's
chief deal maker in Asia, will be replaced in his present
role at Telstra OnAir by managing director of IBM
Australia and New Zealand, Mr David Thodey, who will
take up the post late next month. The unit will form a
fifth operational business group in addition to Telstra
OnAir, retail operations, Telstra Countrywide, and
infrastructure and wholesale services.
Analysts said the new unit signalled Telstra was
considering going it alone on some possible Asian
purchases. PCCW's shares have recently slumped to
year lows and the firm is expected to report a loss today
of as much as $HK2.6 billion ($670 million) for 2000,
limiting its ability to expand through acquisition.
Dr Switkowski said yesterday Telstra was continuing to
pursue opportunities in Asia, particularly in China, that
would provide compelling strategic fits and enhance
shareholder value. But he said the carrier was in no
hurry to make purchases.
Possible targets include a 30 per cent stake in
Singaporean wireless carrier MobileOne, on which the
company has conducted due diligence, and the Asian
assets of global telco giant British Telecom.
Telstra shares continued to benefit from the slump in
Optus shares, closing 2cents up at $6.57.
afr.com
nrstg2p.djnr.com |
