By NZPA
|
Tuesday 1st October 2002 |
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Macquarie Equities, in a report, said while some in the market did not appear to believe the Australian business could be further improved, or even sustained, it believed the business was strategically important for Telecom.
"The improving cash flow position of Telecom's Australian business should give the market increased confidence that the business is viable on a standalone basis, and will be a source of growth for Telecom," Macquarie said.
"... Telecom's current share price implies a negative value for its Australian business, and hence the New Zealand business at a substantial discount to fair value.
"If the market were to recognise our valuation of the Australian business, this would add NZ80-90 cents to the stock price," it said.
Telecom NZ's Australian business is based around AAPT, Australia's third largest telecommunications provider.
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