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Australia: TPG and M2 in a bidding war for iiNet

By  |  April 27, 2015

Australian telecommunications firm M2 Group said it proposed to buy Internet service provider iiNet for $1.3 billion, trumping an approach by rival TPG Telecom Ltd and raising the prospect of a bidding war.

Buying Perth-based iiNet, which has about 1 million subscribers, will help either company become Australia’s second largest internet provider after market leader Telstra Corp Ltd.

Any deal would also put pressure on Singapore Telecommunications Ltd’s Australian unit Optus, which is currently in the second largest internet provider.

“I expect Optus would be immediately running the numbers on whether a bid for iiNet could work,” Rivkin Securities investment director Shannon Rivkin said in a note to clients.

In a statement, iiNet confirmed it received an approach from M2. If it endorses the M2 non-binding offer, TPG Telecom has three days to come back with another proposal.

 

Full Content: news.com.au

 

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