BT, Telstra can't agree on Clear

By Richard Braddell

WELLINGTON - Lengthy negotiations between British Telecom and Telstra under which the latter would take a stake in Clear Communications have ended without agreement.

Speculation that an agreement in which Australian-based Telstra would bolster its local operations through joint venture ownership of Clear with British Telecom has been rife.

But an investment source said that although the negotiations had gone on for some time, they came to an end without agreement a week ago.

While that did not rule out the prospect of a future deal, it is thought likely that British Telecom will inject further capital into Clear to help it on its way to its goal of becoming a major force in the commercial internet market.

Once highly profitable, Clear has been under increasing pressure in its traditional long distance markets, in August reporting a $961,000 loss for the March 1999 year.

In August, British Telecom injected $170 million to pay off all its debt.

British Telecom bought out Clear's three other shareholders in June for a price which is thought to have valued the company at $340 million.