Telecom won’t meet its initial timetable for the proposed structural separation of its business.
In response to media enquires as to whether Telecom could be split in two by the end of June 2011, CEO Paul Reynolds has released a statement advising it will announce a revised timeframe following negotiations with Crown Fibre Holdings.
“In December last year, Telecom was confirmed as a negotiating partner for the UFB rollout and is now in detailed negotiations with Crown Fibre Holdings. However, the final timeframe for demerger will be determined when Telecom is able to reach an agreement,” says Reynolds.
“The company has proposed structural separation – splitting into two separate companies – as part of its proposed package for involvement in UFB that encompasses co-investment, partnership and regulatory and legislative reform.
“There are a wide range of commercial, regulatory, legislative and disclosure considerations involved in enacting the demerger of Telecom. It will also require Telecom’s shareholders to vote in favour of the proposal.”