Telstra, Pacnet in talks about potential acquisition

No certainty that any transaction will take place, says Telstra

Telstra (ASX: TLS) has confirmed in a statement to the ASX that it is in discussions with the owners of undersea cable operator, Pacnet, about potentially acquiring the company.

However, the telco said there was “no certainty” that any transaction will take place as a result of the discussions.

The statement was released in response to an article by <i>Bloomberg</i> which cited an anonymous source. The source told the news website that the companies are nearing an agreement. Pacnet’s owners were seeking a valuation of about $1 billion including debt.

Buying Pacnet would give Melbourne-based Telstra ownership of more than 46,000 kilometres of submarine cable between Asia and the United States, said Bloomberg.

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Tags Mergers and acquisitionsTelstraASXpacnet

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