Singapore Telecommunications (SingTel) launches an intensive round of talks with Australia's investment community on Tuesday in a bid to reassure institutions over its planned acquisition of Cable & Wireless Optus.
A senior SingTel executives will begin lobbying investment firms in Sydney to address their fears about the underlying merits of the deal and SingTel's corporate disclosure policy, an official said.
In addition, SingTel president and chief executive Lee Hsien Yang will on Tuesday host a question-and-answer session for investors in Singapore with C&W Optus chief executive Chris Anderson and chief financial officer Norman Gillespie.
The moves come as SingTel stock, which has slumped by more than a fifth since the deal was announced, continued to trade at record lows. It finished 5 per cent weaker on Monday at S$1.83 after hitting an intra-day low of S$1.79.
SingTel's takeover of Australia's second-largest telecoms firm has unnerved investors in Singapore and Sydney. Analysts said many remain convinced the price-tag, up to A$16 billion (about HK$60.56 billion) when first announced, was too rich.
The deluge of SingTel stock that could be issued to help pay for the cash-and-shares transaction has also contributed to the selling pressure, they said.
Seah Hiang Hong, research head at Kim Eng Securities, said the SingTel team in Sydney could face an uphill battle.
