- Regulator opposes Australian telco mega-merger
- No reasons given, but competition issues previously raised
- Shares in TPG and Hutchison plunge to multi-month lows
(Adds deal value, market reaction and background)
SYDNEY, May 8 (Reuters) - Australia's competition regulator on Wednesday said it opposed a proposed A$15 billion ($11 billion) merger between TPG Telecom Ltd (TPM) and Vodafone Group's VOD.L Australian unit, sending shares in TPG sliding to an eight-month low.
The move comes after the Australian Competition and Consumer Commission warned in December that the deal, which would re-make Australia's cut-throat mobile phone market, may hurt competition.
The regulator gave no immediate reason for its decision, which was not due to be published until Thursday.
"This information was inadvertently published online on our mergers register briefly this afternoon. We intend to publish a further media release shortly," the ACCC said in a statement.
Vodafone mainly runs a mobile phone business in Australia in a joint venture with Hutchison Telecommunications (Australia) Ltd (HTA) , while TPG mainly runs an internet business.
The deal would stop both from competing in each other's markets, the ACCC had said in December.
Neither Vodafone Australia nor TPG had an immediate comment on the decision, which set shares sliding across the sector.
TPG stock dropped 15 percent, its sharpest fall in five months, while shares in Hutchison dropped almost 40 percent to their lowest since December.
Shares in Australia's largest telecommunications firm, Telstra Corp Ltd (TLS) , which had climbed at the prospect of consolidation in the industry, fell almost 3 percent.
The broader market (xjo) fell 0.5 percent on Friday.
($1 = 1.4239 Australian dollars)
News: HTA UPDATE 1-Australia's competition regulator opposes Vodafone-TPG merger
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