Sky TV negotiating purchase of Orcon - 'speculation'

TOM PULLAR-STRECKER
Last updated 05:00 17/06/2014

Relevant offers

Industries

NZ dollar slides to year low NZ Yarn extends timing offer on mill News galore due from Fonterra End to Serepisos bankruptcy faces court challenge Site of John Key's former school to be developed Bunnings 'hard pill to swallow' Time to take Kathmandu to the world, says Kirk Epic battling PGC over fund conflict claims Share sales jolt SLI stocks Kirks investors query return

Sky Television is refusing to comment on whether it is negotiating to take over internet provider Orcon.

Sky TV spokeswoman Kirsty Way said the pay-television provider "didn't comment on market speculation" after a report was published on Saturday that said there were signs Sky would buy the company.

Orcon has been on the block since March. It is understood it is likely to sell in the next few days for about $30 million.

Xero chief executive Rod Drury said he found the idea that Sky TV would buy Orcon both credible and upsetting.

Paymark chief executive Mark Rushworth, a former boss of internet provider Ihug said it was not going to happen.

"Sky doesn't need a network in a UFB [ultrafast broadband] fibre world," he tweeted.

An internet industry source said 2degrees had weighed up buying Orcon to get into the fixed-line market but had pulled back.

Trustpower, which has been quietly growing its broadband business, did not rule out in May making a bid for Orcon. But its telecommunications business head, Peter Gregory, said vendors had to be "realistic" about the price they were asking.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content