Telecom New Zealand says it's "absolutely committed" to its struggling Australian subsidiary AAPT, but won't comment on reports that it is for sale.
Hong Kong-based Pacnet is reported to have made a $420 million offer for the carrier, Australia's third-largest telco.
Officials at Pacnet and TNZ have declined to comment.
Bloomberg has reported that the New Zealand incumbent says it has received no offer for AAPT, which provides enterprise and consumer services in Australia.
Pacnet spokesperson Lorain Wong said the carrier was "looking at opportunities throughout the region".
TNZ bought AAPT from its Australian owners at the height of the tech boom in 2001 and last year expanded it by buying another small local telco, PowerTel.
AAPT made a loss in the 2007-08 financial year, thanks to the cost of the PowerTel takeover and strong price competition, which caused its broadband customer base to shrink 10%.
Margins "remain under significant pressure", it said in its SEC 2008 filing. "Competition from larger competitors has restricted Telecom's ability to acquire new customers, particularly in the corporate and large business sector, and has also put significant downwards pressure on prices."
Pacnet offers enterprise services for Asia-Pacific businesses. Its Australian division signed a multi-year deal for ADSL, IP and other services valued at more than A$35 million a year with Telstra Wholesale in September.