Amcom urges shareholders to defeat TPG

Amcom's chairman is urging shareholders to vote in favour of a merger with Vocus, and has slammed TPG's blocking tactics.

Amcom has slammed TPG Telecom's "self interested" bid to block a merger with Vocus as it seeks support from its own shareholders to create a new third force in telcos.

TPG last week increased its stake in Amcom from 6.7 per cent to 18.6 per cent.

This move is likely to stymie Amcom's plan to create a $1.1 billion company by combining with Vocus, to challenge the dominance of Telstra and Optus.

Amcom chairman Tony Grist has criticised TPG for almost tripling its stake in his company without putting forward a counter merger proposal.

"Quite frankly, the board believes TPG is motivated by looking after their own interests with no regard for Amcom shareholders," he said in a video message to shareholders.

"Put simply, they are trying to stop the scheme."

Amcom shares fell from $2.71, on Wednesday last week, to $2.17 the next day when TPG increased its stake.

"Their actions have already resulted in a fall in the Amcom share price and we believe this will continue if the scheme is not implemented and no superior proposal emerges," Mr Grist said.

The merger proposal would need support from 75 per cent of shareholders to succeed.

Vocus is banned from using its 10 per cent stake in Amcom to vote in favour of a plan for it to buy the rest of Amcom it does not own.

"If we are to overcome the apparent self interest and opposition of TPG, every shareholder vote is crucial," Mr Grist said.

Amcom shareholders have until 11am WST on Friday, May 15 to lodge a proxy vote.

A special shareholder meeting, originally scheduled for this week, has been postponed to May 18 in Perth.

Amcom shares rose 10 cents, or 4.2 per cent, to $2.48.

Meanwhile, TPG lost 14 cents to $9.02 while Vocus fell 11.5 cents to $5.675 by 1553 AEST.


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Source: AAP


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