|
|
To print: Select File and then Print from your browser's menu
-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
|
Telecom NZ downplays Web sale report April 23, 2001 URL: http://www.zdnet.com.au/news/soa/Telecom-NZ-downplays-Web-sale-report/0,139023165,120217191,00.htm
Telecom New Zealand is playing down an Australian newspaper report that it is considering a spin-off of its Internet and directory businesses. The Australian Financial Review earlier reported Telecom NZ was considering the AU$1 billion-plus float to reduce debt. "We've never ruled out the possibility of spin-offs in some areas of the business and we've got a range of options. "We've repeatedly said we're open to these sorts of possibilities but no decision has been made," Telecom spokesman Martin Freeth told Reuters. The initial project offering, known by the internal code name of Project XTC, and partial selldown by Telecom NZ would help relieve pressure on group debt, which stood at NZ$2.24 billion at June 30, 2000, according to the AFR. It said Credit Suisse First Boston was believed to assisting Telecom NZ. Forsyth Barr head of research Rob Mercer said such a spin-off was possible and a combination of the directories and Internet businesses would make sense. "That would be a good one because Directories would provide the cash flow to support the growth of Xtra," Mercer told Reuters. While the prospects of such spin-offs had been discussed for more than a year, it had only recently been made possible by the restructuring of the company into more distinct units. "I would place a reasonable weighting that such a thing could be put together and I think you'll find that all the accounting issues have been completed to allow things like this to occur," Mercer added.
Copyright © 2009 CBS Interactive, a CBS Company. All Rights Reserved. |
