It is something that the industry has known for years. Pacnet has been desperately seeking buyers as the private equity wants to bail out. They didn't get the $1 billion (asking price from Bill Barney then was $2 billion) they were looking for but got only $697 million (comes with $400 million debt). Finally the private equity can get out. Telstra is now full of cash. Not only did they get $2.8 billion from the sale of CSL New World Mobility to PCCW, they also has $11 billion from selling their fixed network to the NBN co in Australia. Best part of this sale is that NBN gets a old copper and hydrid network. The joke is going around that the government had repurchased the "old, out of date copper network" that former Prime Minister John Howard sold last century. Winner is surely Telstra and the loser unfortunately are the Australians tax payers.
Now back to the Pacnet sale. How well will this acquisition go is unsure but one thing for sure is the layoff exercise that will come in the months ahead. Pacnet and Telstra has some of the most number of people working in the internationally especially in Asia. Telstra is heavily overstaffed and unfortunately for Pacnet, it has always been the victor that writes the history.
Now back to the Pacnet sale. How well will this acquisition go is unsure but one thing for sure is the layoff exercise that will come in the months ahead. Pacnet and Telstra has some of the most number of people working in the internationally especially in Asia. Telstra is heavily overstaffed and unfortunately for Pacnet, it has always been the victor that writes the history.
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