One.Tel gets slice of spectrum despite ASX cautioning

One.Tel, which placed $523 million on the spectrum bidding table this week, was unofficially cautioned by the Australian Stock Exchange (ASX) after asking its major shareholders, News and PBL, to exercise their options early in order to raise equity for the spectrum bid.

The telco offered News and PBL $20 million each in exchange for exercising options worth $140 million, which the ASX said would "retrospectively" alter the option price.

The ASX claimed the tactic would contradict exchange listing regulation 6.23, which "prohibits changes to the terms of options to, among other things, reduce the exercise price", unless shareholders voted in favour of it.

Since only 30 per cent of One.Tel is owned by shareholders apart from PBL, News, or other affiliate companies, shareholder approval was virtually guaranteed, even if all of the independent shareholders objected to the tactic.

ACA spokesman Ian Hayne said the government regulatory body, which hosted the auction, had no concerns about the methods bidders used to raise equity to finance their bid. "What's it got to do with their ability to run a mobile phone network?" he asked. "If they come up with the money, we're happy."

In a statement made when the auction was announced last year by the Minister for Communications, IT and the Arts, Senator Alston, the Government expected the auction of the air space would "boost competition in the telecommunications market".

Following the announcement of the auction results, a spokesman for Senator Alston opted to leave the matter within the boundaries of the ASX. He said any "outstanding matters" would be dealt with by the ASX. "It's not a matter for us to deal with."

The only bid higher than One.Tel's was from Hutchison Telecommunications. Hutchison offered $671 million for the spectrum -- exactly the value promised by the Federal Government for Telstra's infrastructure overhaul, and paid for by its initial, partial privatisation.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Byron Kaye

PC World
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?