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16/01/2007 - Telecom New Zealand axes 230 in restructure
Telecom has almost completed a top-down restructuring, causing 230 redundancies so far.
But the company yesterday poured cold water on rumours that it had started a formal search to find a replacement for chief executive Theresa Gattung. Telecom spokesman John Goulter said Telecom had not appointed an executive search agency to start the hunt and no date had been set for Gattung's departure.
But one market watcher said he expected Gattung to remain until its profitable directories business, Yellow Pages, was sold to "go out on a high".
The business is estimated to be worth up to $2.2 billion. One analyst said a high price could allow Telecom to buy back some of its own shares.
Telecom has asked for expressions of interest by February 2 and is expected to complete the sale by June 30. Gattung's future was thrown into doubt last May when the Government announced it was planning to open the company up to competition.
A month earlier, Gattung had announced the top-down review of Telecom with a view to dividing the company into two areas focused on retail and business customers.
The review started with Gattung and has been working its way through the company. It is now understood to have reached the personnel-heavy "level five". Closer to 700 redundancies are expected by the time it finally concludes.
The review is part of a drive to save $150 million by 2010. Before the review started, Telecom employed 7250 people in New Zealand.
Australia's big players are reported to be circling around Telecom's directories business. Media reports say Seven Media group, a joint venture between media mogul Kerry Stokes and private equity firm Kohlberg Kravis Roberts, is a top contender to make a bid.
But a Seven spokesman said yesterday that the reports were "highly speculative".
Telstra Corporation and its Sensis subsidiary as well as Macquarie Bank are thought to be possible bidders. Press publisher Fairfax Media could be a bidder, some analysts say.
http://www.stuff.co.nz/stuff/thepress/3929555a6430.html
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