SingTel fights for Optus bid...again - News

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This story was printed from ZDNet Australia.
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SingTel fights for Optus bid...again

By Irene Tham, Special to ZDNet Asia
June 08, 2001
URL: http://www.zdnet.com.au/news/soa/SingTel-fights-for-Optus-bid-again/0,139023165,120229327,00.htm

Singapore Telecommunications says it's confident of resolving issues regarding its bid for Cable & Wireless Optus, despite formal objections from the Seven Television Network.

"SingTel doesn't believe that there are any issues which cannot be resolved," the company said in a statement.

SingTel was responding to Seven's objections which have been lodged with the Australian Foreign Investment Review Board (FIRB).

"Seven believes that foreign (Singapore) government control of strategic assets--such as those owned by Optus--may breach Australian Government obligations on safeguarding and protecting our national interests," the company said in a statement.

Security concerns first arose over Optus' operation of Australia's defence satellite surveillance and communications operations. SingTel is 78 percent owned by the Singapore government.

However, SingTel reiterated last month that the government's shareholding might be reduced to as low as 65 percent "depending on the relative levels of acceptance (of SingTel's cash-and-share offer) by Optus shareholders".

The takeover bid was announced on March 26 and closes on July 3. It involves three options for each Optus share:

1) 1.66 SingTel shares;
2) 0.8 SingTel shares and AU$2.25 in cash; or
3) 0.54 SingTel shares, AU$2.00 in cash and AU$0.45 in SingTel US-dollar denominated bonds.

"SingTel has submitted its application to the Australian FIRB. We have held detailed discussions with the relevant Government agencies in Australia and are confident that we can put in place arrangements which meet the issues that have been raised," it said.

SingTel claims that "the discussions have progressed well", although the deal is still pending approval from the FIRB.

According to Reuters, Australia's FIRB does not often block bids, but it had scuttled a move by energy giant Royal Dutch/Shell to take control of gas exporter Woodside Petroleum.