Speculation mounts on AAPT sale

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Telecom said it is currently considering options for its Australian business AAPT.

The statement came after speculation in Australian that Perth-based internet service provider iiNet will acquire part of the AAPT business.

A trading halt was put in place on iiNet shares in Australia today pending an announcement about a transaction.

The Australian newspaper earlier reported that iiNet will buy AAPT's consumer business after a bid from TPG Telecom for AAPT's entire operations failed to pass muster.

Telecom said today that it has previously advised that it would consider offers for its AAPT business that were in the best interests of shareholders.

"Telecom is currently considering strategic options in respect of these assets," the company said.

Telecom also said it has sold its stake in Macquarie Telecom for $A9.9 million ($NZ12.2 million). It did not name the buyer. The stake was in Telecom's books at $A9.5m.

Telecom shares rose 2c to $1.98 in afternoon trading.

The company iiNet started in Perth in 1993 and listed on the ASX in 1999. It now supports over 900,000 broadband, telephony and dialup services in Perth, Sydney, Melbourne, Auckland and Cape Town, according to its website.

"The company requests a two day trading halt, and envisions making an announcement to the ASX concerning the proposed transaction prior to the market opening on Monday, August 2 which will lift the trading halt," iiNet said in a statement to ASX.

- NZPA