Ann: Philippines JV negotiations ended, page-3

Telstra has confirmed that talks with beer giant San Miguel to build a new mobile network in The Philippines have ended in failure after months of negotiations.

Telstra had planned to pump billions of dollars into a new joint venture
that would've taken on local incumbents Globe Telecom and PLDT.

Many shareholders had expressed serious doubts about the high risks involved in the deal and Telstra's share price has tumbled since talks were first confirmed in August 2015.

But Telstra chief executive Andy Penn on Monday confirmed earlier reports that both parties had broken off negotiations. He will speak to media via a phone conference at 10:30am.
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"Despite an enormous amount of effort and goodwill on all sides we were simply unable to come to commercial arrangements that would have enabled us to proceed," he said in a statement. "While this opportunity is strategically attractive ... it was obviously crucial that commercial arrangements achieved the right risk-reward balance for all involved.
"We continue to pursue growth opportunities in Asia consistent with our strategy."

San Miguel Corporation President Ramon Ang had earlier told The Philippine Daily Inquirer that the negotiations had ended after months of deadlock.

"Both SMC and Telstra worked hard to come up with an acceptable resolution to some issues," he reportedly said. "However, we agreed we can no longer continue with the talks.

"I believe this is best for all parties."
He added that Telstra had offered to continue providing technical work design and construction consultancy services to the company.

The failure to strike a deal could help lift Telstra's flagging share price because it was seen by some analysts as a risky play.

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