OMEN
09-28-2007, 09:12 AM
THE broadband aspirations of the Seven Network could now turn to Austar's WiMAX wireless technology
The Kerry Stokes-controlled group yesterday launched a takeover bid of up to $127 million for broadband company Unwired.
Under the terms of the bid, Seven is offering 45c a share, or $114 million, for Unwired, but this figure will rise to 50c a share, or $127 million, if Seven achieves a minimum of 90 per cent of Unwired by an as yet unspecified November date.
Directors of Unwired immediately recommended the offer in the absence of a higher offer. Unwired shares yesterday closed 1c higher at 48.5c.
Mr Stokes, Seven's executive chairman, said in a statement yesterday that the network was committed to WiMAX technology. "We believe in the potential of WiMAX as a mobile broadband solution and as an efficient platform for delivering content solutions in multicast and broadcast environments."
In the wake of Mr Stokes' comments, much of the market's focus yesterday was on whether he would further extend his WiMAX interests - should the Unwired deal proceed - via either a purchase or joint venture involving Austar's technology in the area.
Seven and Austar are believed to have already held talks. One informed source said last night: "It does make sense, but there's no deal yet."
But Unwired chairman Mike Burgess has pointed to stronger co-operation between Unwired and Austar. "There's a good symbiosis there," he said yesterday. "In terms of WiMAX, we can reach 64 per cent of the population, and they can reach most of the rest, so between us, we can reach the overwhelming majority of the population. It's logical in a mobile environment for these two companies to work more closely together in the future."
Unwired owns WiMAX spectrum for metropolitan areas around the country, while Austar owns the spectrum in most regional areas. Unwired has built a WiMAX network that so far covers all of Sydney and 35 per cent of Melbourne - with 70,000 customers.
Seven's takeover bid for Unwired has reignited speculation it will use its Australian rights to operate the TiVo digital video recorder - which has an internet connection for downloads and is due to be launched next year - to offer a cut-price alternative to pay-TV operator Foxtel.
Mr Burgess said of Seven's possible plans: "This strikes me as a company that has a long-term and very clear vision of the future, and it's acquiring the pieces to enable that vision. This is the type of investor that will best realise the assets that Unwired has. We have the delivery platforms, and Seven has the media-rich content. I would say it's an excellent fit."
Seven had previously used its related internet telephony company, Engin, to build a 19.8 per cent stake in Unwired over the last month.
Seven said Engin would now be "closely consulted" about the development and planning for the Unwired network.
Mr Burgess said the move of Unwired from a company of "x-thousand shareholders to one shareholder" would leave it as "a fleet-of-foot company, financially robust enough to exploit opportunities as they arise".
The Australian
The Kerry Stokes-controlled group yesterday launched a takeover bid of up to $127 million for broadband company Unwired.
Under the terms of the bid, Seven is offering 45c a share, or $114 million, for Unwired, but this figure will rise to 50c a share, or $127 million, if Seven achieves a minimum of 90 per cent of Unwired by an as yet unspecified November date.
Directors of Unwired immediately recommended the offer in the absence of a higher offer. Unwired shares yesterday closed 1c higher at 48.5c.
Mr Stokes, Seven's executive chairman, said in a statement yesterday that the network was committed to WiMAX technology. "We believe in the potential of WiMAX as a mobile broadband solution and as an efficient platform for delivering content solutions in multicast and broadcast environments."
In the wake of Mr Stokes' comments, much of the market's focus yesterday was on whether he would further extend his WiMAX interests - should the Unwired deal proceed - via either a purchase or joint venture involving Austar's technology in the area.
Seven and Austar are believed to have already held talks. One informed source said last night: "It does make sense, but there's no deal yet."
But Unwired chairman Mike Burgess has pointed to stronger co-operation between Unwired and Austar. "There's a good symbiosis there," he said yesterday. "In terms of WiMAX, we can reach 64 per cent of the population, and they can reach most of the rest, so between us, we can reach the overwhelming majority of the population. It's logical in a mobile environment for these two companies to work more closely together in the future."
Unwired owns WiMAX spectrum for metropolitan areas around the country, while Austar owns the spectrum in most regional areas. Unwired has built a WiMAX network that so far covers all of Sydney and 35 per cent of Melbourne - with 70,000 customers.
Seven's takeover bid for Unwired has reignited speculation it will use its Australian rights to operate the TiVo digital video recorder - which has an internet connection for downloads and is due to be launched next year - to offer a cut-price alternative to pay-TV operator Foxtel.
Mr Burgess said of Seven's possible plans: "This strikes me as a company that has a long-term and very clear vision of the future, and it's acquiring the pieces to enable that vision. This is the type of investor that will best realise the assets that Unwired has. We have the delivery platforms, and Seven has the media-rich content. I would say it's an excellent fit."
Seven had previously used its related internet telephony company, Engin, to build a 19.8 per cent stake in Unwired over the last month.
Seven said Engin would now be "closely consulted" about the development and planning for the Unwired network.
Mr Burgess said the move of Unwired from a company of "x-thousand shareholders to one shareholder" would leave it as "a fleet-of-foot company, financially robust enough to exploit opportunities as they arise".
The Australian