PowerTel postponed its annual meeting just an hour before it was due to begin yesterday, in what may be a sign that the network company is close to signing a deal with Telecom's struggling Australian subsidiary AAPT.
PowerTel last week said it was considering proposals from unnamed independent
parties for a potential acquisition, alliance or other transaction.
The Business Herald had revealed that Telecom was negotiating to buy a blocking stake in PowerTel in order to deflect a potential takeover bid from rival Optus.
An hour before PowerTel was to hold its 10am AGM yesterday, it postponed it by a month to February 26.
Industry observers said it was unusual for a company to postpone a meeting so suddenly and clearly a major event had occurred in PowerTel's negotiations with Telecom or one of the other parties.
The news comes as Telecom prepares to report its second quarter earnings on Friday and investors will be hoping also to receive an update on the talks with PowerTel.
PowerTel said yesterday that while there was no certainty a transaction would be executed or implemented, the board considered it prudent to ensure shareholders were as fully informed as possible before proceeding with the meeting.
PowerTel marketing manager Glenn Christensen said the company was confident its appraisal of proposals would be concluded within the next four weeks.
Telecom is already in a partnership with PowerTel - a deal agreed last year in an attempt to revive its Australian business.
Optus said it did not comment on market rumour or speculation.
PowerTel has the second largest fixed-line broadband network in Australia, after Telstra, and mainly provides wholesale data, fixed-line voice and internet services. It owns a 20 per cent stake in broadband group iiNet and has a market capitalisation of A$306 million, with its share price more than doubling over the past three months on takeover speculation.
ABN Amro analyst Ian Martin has said that a bid for PowerTel was AAPT's best chance to revive its struggling business so it would be a serious player in bidding negotiations.
