SingTel in talks to buy Pacific Internet: Report

SingTel in talks to buy Pacific Internet: Report

SINGAPORE (AP): Singapore Telecommunications (P.SGT) is in
"advanced stages" of talks to acquire Nasdaq-listed Internet
service provider Pacific Internet (PCNTF), The Straits Times
newspaper reported Saturday.

SingTel already owns Pacific Internet's rival SingNet. The two
companies are Singapore's major Internet service providers.

SingTel, which is 78 percent government-owned and the affluent
city-state's largest company, has been losing its former monopoly
due to recent government liberalization of Singapore's telecoms
market.

The company is trying to make up for its weakened position at
home by aggressively expanding across Asia in a bid to become a
major telecoms player in the region.

SingTel is also shopping locally, having earlier expressed
interest in bidding for rival Singapore mobile phone operator M1,
the newspaper said.

In its report on the Pacific Internet talks, The Straits Times
quoted unidentified sources "close to negotiations."

SingTel spokesman Chia Boon Chong Saturday declined to comment
on the report. "We do not comment on any specific investment
opportunities or market speculation," he said.

"As and when there are agreements signed or material
developments regarding investments in other companies, we will
make the announcements," he added.

The newspaper quoted Dulcie Chan, a spokeswoman for
Singapore's Infocomm Development Authority, as saying that any
applications for shareholding changes would be reviewed "to
ensure that the change does not unreasonably restrict
competition."

Public affairs officers from the authority, which regulates
Singapore's communications industries, couldn't be reached for
comment Saturday.

The Straits Times said SingTel is discussing the Internet deal
with SembCorp Industries (P.SEC), which owns 42 percent of
Pacific Internet, and that a general offer would me made for all
Pacific Internet shares if an agreement is reached.

Singapore International Media's SIM Ventures owns 14 percent
of Pacific Internet.

SembCorp and SIM are controlled by Temasek Holdings,
Singapore's government-owned holding company.

Pacific Internet has at least 380,000 subscribers is currently
worth about $55 million, The Straits Times said.

Pacific Internet couldn't be reached for comment Saturday.