Internet provider iiNet admits it is concerned a $1.4 billion takeover by low cost rival TPG could hurt its customers and staff.
The company is facing a backlash from shareholders worried about the impact of the deal on iiNet's one million customers and their level of service, and criticised management for a lack of information on the takeover.
It has been recommended by iiNet's board but requires the support of at least 75 per cent of shareholders, who will vote on the deal in June.
iiNet chairman Michael Smith briefed investors on Monday to try to appease their concerns, and said the company had already been personally addressing the worries of staff and customers.
"I'm not going to present that we can accurately forecast the outcome of this, but clearly we are very concerned about the fact our customers and staff do very well out of this," Mr Smith told reporters.
TPG has offered a significant premium to iiNet's market value to reflect the company's high customer service levels, and the new owners would want that value to grow, he said.
"TPG has paid a large premium to acquire that particular special value, they are not going to run it into the ground," Mr Smith said.
TPG has indicated it will run iiNet and its existing business separately, targeting different ends of the internet market.
Mr Smith also said on Monday there had been no indications from TPG of job cuts.
The company's founder and former chief executive Michael Malone, who remains a shareholder, has joined those voicing criticism of the takeover, claiming the board had run out of their own ideas.
Mr Smith disagreed with Mr Malone's assessment, and said most shareholders supported the takeover.
"We hear voices from both sides. I think most of what we have heard is positive," he said.
"Even people who have criticised the deal and who are close to us have said the price is a good price.
"The comments that some shareholders are making ... go to the fact they are worried about the future of company more than they go to price."
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