BlackRock Inc Buys 5% Stake In New Zealand's Telecom

Investment management company BlackRock Inc (BLK) has taken a 5% stake in Telecom Corp of New Zealand Ltd. (TEL.NZ), according to a filing at the New Zealand Stock Exchange Friday.

The stake, involving 96 million shares, was built up through 16 subsidiaries.

As of June 30 BlackRock's assets under management totaled US$3.66 trillion across equity, fixed income, cash management, alternative investment, real estate and advisory strategies, according to its web site.

In late October Telecom shareholders voted in favor of spinning off the company's infrastructure unit, known as Chorus. The separation of Chorus is one of the requirements in a deal that gave Chorus the contract to build the majority of New Zealand's nationwide fiber network. Telecom shareholders will receive one share in Chorus for every five Telecom shares held.

Once separated, Chorus will get Telecom's copper network and the majority of exchange buildings, while Telecom will remain a retail business comprising the mobile network, the company's international businesses and its share in the fiber cable linking New Zealand, Australia and the U.S.

By Rebecca Howard, Dow Jones Newswires; 64-4-471-5990; [e-mail]