NZ public cut off in mobile phone float

By GEOFF SENESCALL

The New Zealand public are being dialled out of the estimated $2 billion Australasian float of 20 per cent of the mobile phone company Vodafone.

Though local brokers have argued for the public to be included, an edict from Vodafone's London head office says the issue will only extend to New Zealand institutions.

That means not only the public but also New Zealand Vodafone customers, who at March numbered 473,000, will not be targeted by the issue.

This is not the case across the Tasman where the public will be included in the float. It is not known, however, if the 1.44 million Vodafone customers in Australia will be given any preference.

Vodafone in Australia would not discuss the float with the Business Herald. But a broker close to the issue said basically the "good old New Zealand retail market is getting screwed.

"You would have thought the idea of doing a float was to help drive the brand in the New Zealand market. But that is obviously not the case."

The Business Herald understands the intention had been to have a fully fledged offering in New Zealand. However, Vodafone in London and its advisers, Goldman Sachs, are believed to have decided it would be easier and quicker to just do an Australian offer.

Furthermore, by only doing a partial offer in New Zealand a full prospectus would not be needed, therefore reducing the costs of the issue.

One broker also pointed out that Goldman Sachs did not have any presence in New Zealand. Though it is represented in Australia, Goldman is thought to be most keen on distributing the issue internationally where returns are much higher.

Marketing for the issue is believed to be scheduled for early June. Listing of the estimated $10 billion company is expected to be in early July.

Meanwhile, the decision to leave the New Zealand public out of the issue will not be lost on Telecom. It is understood to be sounding out various people in the market about doing its own mobile offering. If it decides to go ahead with this plan, it is likely to mop up the remaining shares it does not own in the listed Australian communications company AAPT and package a New Zealand and Australian mobile company.