why would telstra with ... 20B of revenue spend say 200m to purchase a company with 30m revenue / 11m free cash flow.
I could understand TPG's purchase of IPX and Pipe Networks because they arguably had either IP / extremely clever management / good assets.
but Telstra wouldn't gain anything spectacular by this... particularly as a lot of BGL's customers are probably tempted to sign up to the 4G mobile data packages that are on offer.
It certainly wouldn't be made to increase revenue... potentially to snap up management talent. But I think they would be better off spending 4B to purchase TPM and lock the Teoh's into a 10 year non compete clause.
I think BGL is more likely to acquire than be purchased. Makes a lot more strategic sense and also being a younger management team they are probably more eager to grow their careers and wealth with BGL.
77 cents, page-9
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Last
$1.24 |
Change
0.065(5.53%) |
Mkt cap ! $1.587B | |||
| Open | High | Low | Value | Volume |
| $1.23 | $1.25 | $1.22 | $8.056M | 6.535M |
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| No. | Vol. | Price($) |
|---|---|---|
| 5 | 25542 | $1.24 |
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| Price($) | Vol. | No. |
|---|---|---|
| $1.25 | 14835 | 1 |
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