Telecom NZ nudges 20 per cent share of AAPT

Telecom New Zealand's (Telecom NZ) share in AAPT has jumped to almost 20 per cent following its purchase of more than 9 per cent of the carrier on Friday.

The purchase makes Telecom NZ the largest shareholder in AAPT, and adds fuel to speculation that Telecom NZ could move to acquire the carrier.

Telecom paid about $5 per share to up its stake on Friday, the same price which Cable & Wireless Optus offered in its hostile takeover bid for AAPT.

C&W Optus' bid for AAPT was scuttled last week after the Australian Competition and Consumer Commission (ACCC) asked C&W Optus to withdraw its bid for the carrier.

ACCC based its request on concerns the acquisition would lessen competition in a number of telecommunications markets.

AAPT officials have claimed C&W Optus offer of $5 per share undervalued AAPT.

However, Larry Williams, CEO, AAPT, said Telecom NZ's purchase was a vote of confidence in AAPT.

"AAPT looks forward to discussions with Telecom New Zealand to determine its strategic goals," Williams said.