Sky TV negotiating purchase of Orcon - 'speculation'

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

Relevant offers

Industries

Scales upbeat about NZX debut Man seriously hurt at industrial fuel depot Auckland Airport US loan priced US just the ticket for Connexionz Battle looms over proposed Porirua supermarket Banks put money on Chorus promise What you need to know in business: Friday Sawmilling firm ordered to reduce noise at night Moa plans $5.3m capital raising Company to dig for South Island treasure

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