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Australia: iiNet charms merger opponents

By  |  March 22, 2015

iiNet chairman Michael Smith has arranged a hastily convened call with investors on Monday, in response to investor criticism the board has sold the telco company too cheaply in its $1.4 billion deal with David Teoh’s TPG Telecom.

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    The company has also scheduled meetings with individual investors in the coming days.

    iiNet has not held a briefing since the deal with TPG was announced, when TPG’s market capitalisation rose by more than $1 billion, a move that some investors argue proves the company is underpaying for iiNet.

    “I believe it’s late to try and defend something that clearly isn’t the best deal for shareholders,” BT Investment Management’s head of smaller company Paul Hannan said. BT owns more than 5 per cent of iiNet.

     

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