Telecom New Zealand is mulling over a AU$1 billion-plus float of its Internet and directories business to reduce debt, according to the Australian Financial Review.
The daily business newspaper said in an unsourced report Telecom NZ also aimed to unlock value from its trans-Tasman operations through the plan.
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.
"We don't discuss anything we might be doing with the asset portfolio in terms of acquisitions or sales," the AFR quoted Telecom NZ spokesman Martin Freeth as saying.
"It is just not something we could discuss publicly until anything happens and the appropriate announcements were made to the stock exchange," it said.
The AFR said Credit Suisse First Boston was believed to assisting Telecom NZ.
