A statement to ASX BigAir’s board said it was taking into consideration the telco’s offer.
However the board has advised shareholders not to take any action, because it notes there are certain conditions to the takeover bid that could be breached.
“The CVA offer is conditional on BigAir not acquiring any capital asset of any size,” said the board.
“BigAir had, prior to the takeover being announced, lodged a confidential, binding offer to acquire certain business assets of another party.”
“That offer if accepted will breach the condition in CVA’s bid.”
If the deal goes through, Nathan Burley Ovum analyst believes, a merged entity would be able to realise significant synergies.
He told CRN that the deal would offer greater scale and subsequent reach for both companies’ customers.
“Additionally, we believe that considerable consolidation will occur in Australia's telecommunications sector amongst tier 2 and tier 3 players,” he said.
Clever’s BigAir takeover in murky waters
By Lilia Guan on Oct 7, 2008 12:44PM
In The Spotlight
Got a news tip for our journalists? Share it with us anonymously here.