Speculation on about Telecom interest in Amcom stake

The sale -- expected to be completed by the end of the financial year -- created an opportunity for Telecom to gain a controlling stake not only in Amcom but also in Australia's third-largest internet service provider, iiNet, the Sydney Morning Herald reported on Friday.

Telecom already has an 18 per cent stake in iiNet and control of Amcom would effectively give it another 22 per cent in the Perth-based company.

Analysts believe Paul Broad, the head of Telecom's Australian operations, who also sits on iiNet's board, is very interested in increasing the stake in iiNet.

"They are the logical player but ... that doesn't mean it's going to happen," a BBY analyst, Mark McDonnell, said. "I would think Telecom is probably only there at a bargain basement price."