It turns out that Primus Telecom executives have a penchant for bare face lying when it comes to aquisition discussions, especially their General Counsel.This morning M2 Telecommunications Group Ltd announced that it has entered into a binding Equity Purchase Agreement to acquire 100% of Primus Telecom Holdings Pty Ltd and its subsidiaries “Primus”. The transaction is expected to complete on 1 June 2012.
Back on the 5th of February ChannelNews published a story that Primus Telecommunications Australia, one of Australia’s largest Telecommunications carrier, was believed to be up for sale.
Within hours of that story being published John Horan General Counsel for Primus Telecom Australia wrote to 4Square Media.
The Correspondence said:
“I am General Counsel for Primus Telecom Australia. It has been brought to my attention that you are the author of a contrived, misleading and completely fabricated news report made available at channelnews.com.au suggesting that Primus Telecom Australia is believed to be up for sale.
“I understand this news report has been circulated and made available by you, as author, and also as Manager and Director of 4SquareMedia Pty Ltd. Please advise if my understanding is mistaken. I formally allege that you have intentionally and deliberately made this misleading and damaging news report generally available on the internet without proper regard to the source and without having it appropriately verified and confirmed.
“I want to make very clear to you that this news report is in clear breach of section 18 of the Australian Consumer Law, as well as giving rise to grounds of action under Australian tort law and US statutes.
“This is potentially very damaging to the business operations of Primus Telecom Australia and its US based parent company, PTGi.
“I request you remove these misleading and damaging assertions immediately and confirm you have done so by return email.”
M2 Telecommunications Group today said that they have acquired 100% of Primus Telecom Holdings Pty Ltd and its subsidiaries for an all-cash consideration of A$192.4 million on a debt free basis and including A$10.6 million of restricted cash.
When ChannelNews contacted Horan, he said that he was acting for the CEO of Primus Telecom Australia Tom Mazerski and that both he and Mazerski had “no knowledge” of a potential acquisition of iPrimus.
He said at the time that Mazerski would contact ChannelNews but no call eventuated.