Merger talks between telecommunications company 2degrees and local broadband operator Orcon Group may have hit a wall, according to an Australian media report.
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The Australian Financial Review is reporting that 2degrees' owner, US-based Trilogy International is dragging its feet, with negotiations not progressing as quickly as some parties would have liked.
The paper suggests that Trilogy is trying to tough out a favourable deal, as it had been in the local telco sector for longer and felt it had a stronger negotiating position.
In a statement to RNZ, 2degrees said discussions are continuing between Trilogy International Partners and Macquarie Asset Management / Aware Super (MIRA) regarding a potential merger of 2degrees and Orcon Group.
"An update will be provided as soon as further information is available."
Talks between the Trilogy, and Orcon's owner, MIRA, have been underway since early October, with both companies shelving their separate plans to float 2degrees and Orcon on the local stock exchange by the end of the year.
A month out from Christmas, the initial public offering window appears to have closed for both companies, the Australian Financial Review reported.
Orcon Group, formerly known as Vocus New Zealand, owns a range of broadband operations such as Slingshot, Orcon, and Stuff Fibre.
Local investment analyst Greg Smith of Fat Prophets had previously said a union between the two companies would comprise nearly 20 percent of the New Zealand market, with revenue touching $1 billion and earnings of $200m.