Will Telstra-PCCW abandon M1 bid?
By Staff
Wednesday, October 10 2001 10:37 AM
SINGAPORE--Australian telco Telstra Corp denied media reports that its joint venture with Pacific Century CyberWorks Ltd has abandoned plans to bid for Singapore's No 2 mobile operator MobileOne Asia (M1) Pte Ltd.
A report by the Australia Financial Review, which cited unnamed sources, said Telstra chief financial officer David Moffatt ended the talks as part of a cost-cutting effort. It noted that Telstra would not return to the negotiating table until global valuations become more stable.
According to Bloomberg, however, Telstra spokesperson Karen Gomez has labelled the report as "inaccurate." "We're not aware of any official statement to that affect, nor have we made any official statement," she noted, without elaborating.
Regional Wireless Co--60 percent owned by Telstra and 40 percent owned by Hong Kong's PCCW--is believed to be bidding against Malaysian's biggest mobile company Maxis Communications Bhd for M1.
M1 is owned by Singapore Press Holdings Ltd (35 percent), Keppel Telecommunications & Transportation Ltd (35 percent) and a joint venture between PCCW and UK's Cable & Wireless Plc (30 percent).
In August, the Australian Financial Review reported that Regional Wireless was prepared to pay US$1.6 billion for the company, but that M1's owners were asking for more.
Newspaper reports in Australia also reported then, citing sources close to the negotiations, that the PCCW-Telstra joint venture had refused to put in a bid that met M1's demands, thus effectively stalling the sale.
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