Australian iiNet rejects $NZ30M ihug bidSeptember 12, 2006 -...

Australian iiNet rejects $NZ30M ihug bid

September 12, 2006 - 7:39AM

The Australian parent of telecommunications operator ihug has turned down a $NZ30 million ($A25.38 million) Orcon bid for the company.

Orcon chief executive Scott Bartlett said his company had made the offer for ihug but had been knocked back, The New Zealand Herald reported.

"We thought it was a fair estimation of its worth but do not expect to be part of the process now," he said.

It is understood that ihug's owner iiNet has also rejected a $NZ36 million bid from Internet company Compass Communications for ihug, New Zealand's third largest Internet provider.

The company was put up for sale by iiNet on July 20 and investment adviser Grant Samuel was appointed to advise on the sale.

TelstraClear, Sky and BCL are believed to be talking to iiNet over the sale - but did not want to comment on Monday.

IDC telecommunications analyst Chris Loh said ihug's value had risen since the Government announced in May it would open Telecom's networks to providers.

AAP