KEY POINTS:
Telecom, which is bidding to take over Sydney-based telco PowerTel, is reported to have made an approach to another Australian telecommunications company.
Telecom was understood to have approached Amcom Telecommunications with a friendly takeover offer of up to A$80 million ($92.5 million), The Sydney Morning Herald (SMH) reported today.
Such a deal could also give Telecom a controlling stake in Perth-based internet company iiNet.
At the end of January Telecom, which already owns Australia's third biggest phone company AAPT, announced a proposed A$357 million takeover of PowerTel , three months after forging closer ties with the Sydney-based telco in a high-speed broadband deal.
Telecom has now increased its stake in PowerTel to more than 58 per cent, making the prospect of a counterbid highly unlikely.
Yesterday a person familiar with Telecom's approach to Amcom told the SMH Telecom had been in talks with Amcom in December about a proposed offer.
"They have unofficially approached Amcom about taking them out," the source said. "(But) it's not a done deal."
Another source close to the parties said that "cutting a deal with Amcom was the only way (for Telecom) to take out iiNet".
Telecom would gain a 36 per cent stake in iiNet through a bid for Amcom, while on completion of its takeover of PowerTel, Telecom would gain a 17 per cent holding in iiNet.
- NZPA
