Dealing Down Under

Communications Today, April 19, 1999

A deal is taking shape in Australia with major implications for the nation's wireless market. Cable & Wireless plc [CWP] affiliate Cable & Wireless Optus (C&W Optus) Friday announced plans to make a cash tender offer valued at about $1 billion for rival AAPT Ltd. The combined company would be a more potent competitor for telecom market leader Telstra Corp.

Ltd. [TLS], which also qualifies as the largest cellular operator Down Under. AAPT is primarily a long distance carrier but, like C&W Optus, offers a full range of telecom services. AAPT's cellular activities are limited to resale, via agreements with C&W Optus and Vodafone Pty. Ltd. [VOD], Australia's other cellular operator (and a familiar name for the wheeling and dealing in which it's engaged elsewhere). C&W Optus would enjoy through the proposed acquisition an increase in the size of its cellular base, which stood at more than 1.8 million customers at the end of last year.