Shares of Singapore Telecommunications rallied to a two-month high on hopes its take-over target Cable & Wireless Optus might benefit from the collapse of One.Tel.
"The collapse of One.Tel in Australia is seen as positive for Optus," said Gregory Yap, head of OCBC Investment Research.
One.Tel called in administrators last week after its two biggest shareholders said the group was insolvent, leaving its customers in limbo.
As administrator of One.Tel initiated a controlled wind-down of the group, its main rivals Telstra and Optus had scrambled for One.Tel customers.
Yap said the rise in SingTel shares could also be linked to Optus' share recovery, but it was difficult to quantify how much the gains in each were related to the other.
SingTel shares, under pressure for two months after announcing its proposed acquisition of Optus in late March, surged as much as 9.6 percent.
SingTel has made a AU$17 billion bid for the Australian telco through cash and scrip alternatives.
