A telecommunications analyst says there's no information to back up an estimate that Telecom shareholders will be $500 million better off if the company splits.
The company must separate its network arm, Chorus, into a standalone company in order to participate in the Government's $1.5 billion ultra-fast broadband initiative, and needs shareholder approval to do this.
An independent expert report by Grant Samuel contains the figure and says a company split is in shareholders' best interest.
Forsyth Barr telecommunications analyst, Guy Hallwright, says the report hasn't really attempted a valuation of the company and there is little detail on how the report has come up with its figure.
Despite this, Mr Hallwright says, a split is best option for the future of Telecom and its shareholders, as the telco would otherwise be competing with another company rolling out ultra-fast broadband.
Meanwhile, Mr Hallwright says the 532-page tome Telecom has sent out explaining its proposed split is not user-friendly and shareholders will get more value out of the meetings the company is holding around the country.
The meetings begin in Dunedin and Christchurch on 26 September.
