Amcom buys up big in iiNet

Tuesday, 6 June, 2006 - 22:00

PERTH-based Amcom Telecommunications Ltd has taken a leap of faith in fledgling ISP iiNet by taking up a 19.97 percent stake in the company. The Amcom stake, mainly bought at 83 cents a share last week, could block any other takeover moves. Amcom managing director Eddy Lee said the stake was not intended as a blocking stake but was a chance to “get a seat on the table and show what we can offer”. The company had sought to take a stake in iiNet during the ISP’s recent five-week trading halt but could not seal a deal. Instead, iiNet made a placement to Sydney-based telco PowerTel Ltd, which has a big east coast customer base.