Question on future value. What benefits would arise from a merger between Amcom and PIPE, instead of the TPM transaction?
Amcom (ASX: AMM) from what I understand are the PIPE of WA, SA and NT. In 2008 they mentioned that they had signed some resale agreement with some unnamed party with substantial fibre assets on the east coast which I believe would have been PIPE.
If the TPM transaction fails, PIPE needs to raise funds somehow. From the PIPE perspective a merger with Amcom would help to reduce the combined debt ratio, and expand the service offering to cover all of Aus (is this actually worthwhile?). However what benefits would this have for Amcom shareholders?
Disclosure: I hold both AMM and PWK.
PWK Price at posting:
$6.17 Sentiment: LT Buy Disclosure: Held
