Telecom NZ on brink of Amcom buy?

in brief Amcom Telecommunications has flagged plans to soon make a major announcement, following reports Telecom New Zealand approached the company for a possible aquisition.

Amcom this morning suspended trading on the Australian Stock Exchange pending the announcement.

Earlier reports said a Telecom takeover of Amcom could fetch up to AU$80 million.

Such a deal would also give Telecom a major stake in Perth-based telco iiNet, solidifying the Kiwi telco's position as a major player in the Australian telecommunications landscape.

Telecom is currently negotiating a takeover of Sydney-based telecommunications provider PowerTel, which has a 17 percent holding in iiNet. Amcom has a 19 percent share in iiNet.