Rumours of Clear sale still alive

By RICHARD BRADDELL

The future ownership of Clear Communications has become a game of "watch this space" as rumours of an imminent sale by owner British Telecom go unchallenged.

Boston firm Berkshire Partners, the Fay Richwhite and Todd Corporation-backed Jump Corporation, and a management group are said to have been working on a deal for months.

British Telecom has previously said that it would retain an association with Clear and it remains to be seen whether any sale will be total or partial.

One of the sticking points to the deal is said to be the amount of money British Telecom is willing to provide.

But a rumoured price of $US160 million ($395 million) would imply a part-sale as British Telecom has more than $700 million invested in Clear.

British Telecom bought out Clear's other three 25 per cent shareholders in June 1999 and figures in former owner TVNZ's accounts suggest it paid about $85 million apiece.

It immediately injected another $170 million to pay off Clear's debt and has since provided $235 million in capital expenditure in the last financial year, with up to $200 million likely this year.

In the last year, Clear has stepped up its focus on corporate and commercial customers.