wmartin@stl-06sima.army.mil (Will Martin) (06/05/90)
I append below an edited extract from an article in the May 30 issue of
the {St. Louis Post-Dispatch}:
BELL BIDDING FOR NEW ZEALAND FIRM
SW Bell plans to submit a bid to the New Zealand Commerce Commission
for up to 49.9% of that country's state-owned telephone company. NZ is
selling the telco to private investors as part of a privatization
program. The gov't hopes to raise at least $1.7 billion (US) from
selling the entire company (Telecom Corp. of New Zealand).
Telecom was part of the postal service until recently, when it was set
up as a separate company. It has 1.5 million telephone lines in NZ, a
nation of 3.3 million. The company also provides cellular and LD
service and sells telephone equipment.
NZ law allows one foreign investor or a consortium of private
investors to own up to 49.9% of the telco; the remaining 50.1% will be
sold through stock markets in NZ and elsewhere.
SW Bell's bid is not yet final; it is working with OTC Ltd.,
Australia's international LD company, and other entities on possible
joint bids. Bids are due June 6; the commission expects to choose a
buyer by late June or early July.
SW Bell already sells telephone equipment and computerized directory
publishing systems in NZ. An SW Bell subsidiary also sells Yellow
Pages advertising in five metropolitan areas of Australia.
Telecom Corp. of NZ had revenue of $1.24 billion for the year ended
Mar 31, '89, with a profit of $168 million and assets of $2.28
billion; it has 17,000 employees.
Regards, Will