The Australian government has given high-level assurances to Cable & Wireless Optus that it supports the company's takeover by Singapore Telecommunications.
In an unsourced report, The Australian newspaper said a senior Australian cabinet minister was believed to have communicated the government's position to SingTel and Optus this week.
The move comes amid concern about the slow progress in the AU$17 billion takeover, with SingTel this week extending its offer to September 3 as it awaits regulatory approvals.
Australian Treasurer Peter Costello'S approval is also still required for SingTel's takeover bid, although two other ministers have signed off on the deal, a spokesmen for Costello said.
"The treasurer had said he will make a decision at the appropriate time," the spokesman said, declining to elaborate further. Australia's Defence Minister Peter Reith has already given his nod to the deal.
SingTel, which is facing legal action from the Singapore government, said its application to Australia's Foreign Investment Review Board was progressing well and that it remained confident of resolving outstanding issues.
Australia's Defence department signed a deed of arrangement with SingTel last month to protect Australian military communications and its investment in a AU$500 million satellite joint venture if the Asian carrier gained control of Optus.
