Telstra in talks with Vodafone

Australian firm Telstra yesterday said it was in discussions about possibly selling TelstraClear, its struggling New Zealand operation, to Vodafone New Zealand, but stressed there was no certainty as to whether an agreement would be reached.

Telstra said it had been approached by Vodafone New Zealand, the country’s biggest mobile phone operator, about selling the unit, which operates fixed line, internet networks, and resells pay television and mobile services.

TelstraClear has been stung by lower revenues and high capital expenditures due to the costs of rebuilding its network infrastructure in Christchurch, devastated by an earthquake in 2011.

UK-based Vodafone confirmed that it had entered into discussions with Telstra to explore a potential acquisition of the business.

Fund managers said the possible takeover made sense as Telstra’s home phone and internet services would complement Vodafone’s presence in the mobile phone market.