Telstra calls off Adam Internet acquisition

Regulatory roadblocks have put Telstra‘s (ASX: TLS) latest acquisition on the chopping block. The company announced Tuesday that its plans to acquire South Australia-based Internet Service Provider Adam Internet have run out of time.

Telstra first announced its intentions to buy out Adam Internet last October, pending regulatory approval from the Australia Competition & Consumer Commission (ACCC). The Commission raised several concerns that, according to Tesltra, weren’t able to be addressed by the acquisition agreement’s 30 June cut-off date.

“We are very disappointed by this outcome,” said Telstra Chief Customer Officer Gordon Ballantyne in a statement. “We believe this transaction would have provided real benefit to Australian consumers and would have added new competition into the broadband market.”

Adam Internet Executive Chairman Greg Hicks shared similar sentiments: “Adam Internet is disappointed this important condition precedent could not be achieved in a commercially acceptable time frame, and therefore we will no longer be proceeding.”

With its legendary, fully franked 28 cent dividend, Telstra is the darling of Aussie investors. But with its share price skyrocketing over the past year and regulators roadblocking the corporation’s expansion, is Telstra past its prime? Click here for our brand-new report: “Is It Time to Sell Telstra?”

More reading

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.