A little bit more in this updated version. Yes, mainly...

A little bit more in this updated version. Yes, mainly speculation. Interesting to know who is feeding the journo this type of story. Is this Netcomm's version of Investor Relations or just a larger holder looking for some SP appreciation.

With the level of mergers and acquisition activity at a high around the world, dealmakers are looking at all segments of the Australian market for the next transaction.

One company that has loomed on the radar of bankers as a potential takeover target is Netcomm, the Sydney-based fixed-wireless equipment supplier.

The company is a supplier to the NBN and is also expanding its overseas business and could be popping up on the books of major telcos, especially in the US.

Netcomm has a market capitalisation of about $165 million, which means a major overseas player could pick it up for small change.

The stock has endured a volatile ride over the past year, shifting from a peak of $1.64 in August last year to its present level of $1.15.

The company gained 3.1 per cent yesterday and dealmakers say it is becoming increasingly likely that Netcomm is being looked at by overseas rivals.

The prospect of an international takeover first emerged when Netcomm scored a fixed-wireless contract about 18 months ago with AT&T. The contract significantly boosted Netcomm’s overseas business.
A deal of that nature was first subject to speculation about three years ago, when the company’s market capitalisation was nearly $415m, but its valuation has slipped steadily since then.

Netcomm supplies outdoor wireless antennas to take fixed-wireless connectivity to select rural parts of 18 states across the US under the AT&T deal.

In April this year, it also announced it had won a fixed-wireless contract with Bell Canada to help provide high-speed broadband to rural areas in that country.

One school of thought behind Netcomm’s falling share price is that the company is not well understood by Australian investors, especially by institutional shareholders.
Sources say the company’s growth prospects could thrive if it was owned by overseas interests.