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Spoon
The competition watchdog has flagged a public inquiry into the proposed takeover of iiNet by TPG Telecom, a move that would create Australia's second-biggest fixed-line telecommunications company after Telstra.

TPG Telecom on Friday said it will acquire the Perth-based telco for $8.60 a share, in a friendly transaction that values iiNet at $1.4 billion.

http://www.smh.com.au/business/tpg-tele … 42vm9.html

Well this seems surprising. iiNet has long been the ISP with the best reputation and service around Australia, so this seems concerning for whatever changes could be made in the future to alter its direction/services.

What are your thoughts on this?
willy
I was with TPG for 5 years and had awesome speeds and service. I did like that iiNet was WA based though and that's predominately why I am with them now.

Conflicted.
Clownshoes
I guess you'd better hope their business plan doesn't involve ruining massive purchases.

Seems like the moves TPG have been making in recent times are pretty great (Fibre to the Basement, Pipe Networks, ...iiNet).
moss
As an Internode customer I am concerned...

Although I said the same thing when iiNet bought Internode some 3 years (?) ago

Financially speaking the bid is quite huge for TPG, I read that TPG's debt/equity ratio would become significantly encumbered with the bid, moving from 0.9 to 3.1, although they are expecting their EPS to increase due to raising debt capital instead of equity for the takeover bid.

Mean while, as expected, iiNet share price has exploded today with the possibility of a take over bid. Likewise TPG has heated up as well.
moss
Clownshoes wrote:
I guess you'd better hope their business plan doesn't involve ruining massive purchases.

Seems like the moves TPG have been making in recent times are pretty great (Fibre to the Basement, Pipe Networks, ...iiNet).


Wasn't their FTTB plan completely halted by the ACCC? I don't recall exactly the details but I do recall something put it down pretty hard.
Clownshoes
moss wrote:
Clownshoes wrote:
I guess you'd better hope their business plan doesn't involve ruining massive purchases.

Seems like the moves TPG have been making in recent times are pretty great (Fibre to the Basement, Pipe Networks, ...iiNet).


Wasn't their FTTB plan completely halted by the ACCC? I don't recall exactly the details but I do recall something put it down pretty hard.


Yes, they have to retool the plans to offer wholesale. They haven't stopped rolling it out.
Malieus
This terrifies me, as TPG support is located in Manila in the Philippines. And the Commute would be hellish.
Last edited by Malieus on Mar 15th, 2015, 9:30 pm, edited 1 time in total.
Spoon
iiNet founder and former chief executive Michael Malone has called on fellow shareholders to reject TPG Telecom's $1.4 billion takeover bid and launched a scathing attack against iiNet's board of directors.

"I ask that if this deal is defeated, then the current board stand aside," he said. "They have run out of ideas on how to grow this great company. Leave."

Instead, Mr Malone called for entrepreneurs to be placed in leadership positions at the company to help spark new ideas.

http://www.smh.com.au/business/iinet-fo … m5cl9.html

Hope remains
Hunterbob
Aside from removing the competition and potentially monopolising (obviously a bad thing - price fixing etc.), I don't really understand what's bad about this. Is it because TPG are pretty crap, or just the non-competition thing?
Spoon
It's just that iiNet are generally very good and having a less praiseworthy competitor buy them out will likely result in a lowering of product/service quality over time
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