Merger talks between telecommunications company 2degrees and local broadband operator Orcon Group may have hit a wall, according to an Australian press report.
The Australian Financial Review reports that 2degrees owner Trilogy International, based in the United States, is dragging its feet, with negotiations not moving as quickly as some parties would have liked.
The document suggests that Trilogy is trying to strike a favorable deal, as it had been in the local telecoms business for a longer time and felt it had a stronger negotiating position.
In a statement to RNZ, 2degrees said discussions are continuing between Trilogy International Partners and Macquarie Asset Management / Aware Super (MIRA) regarding a possible merger of 2degrees and Orcon Group.
“An update will be provided as more information becomes available.”
Talks between the trilogy and Orcon owner MIRA have been ongoing since early October, with the two companies putting aside plans to list 2degrees and Orcon on the local stock exchange by the end of the year.
At one month of Christmas, the initial public offer window seems to have closed for the two companies, the Australian Financial Review reported.
Orcon Group, formerly known as Vocus New Zealand, owns a range of broadband operations such as Slingshot, Orcon and Stuff Fiber.
Local investment analyst Greg Smith of Fat Prophets previously said a union between the two companies would account for nearly 20% of the New Zealand market, with revenues reaching $ 1 billion and profits of $ 200 million.