Macquarie Bank to advise Service Stream

The Melbourne-based company, one of Telstra's three major maintenance contractors, approached Macquarie for help about a fortnight ago as suitors made tentative steps to capitalise on Service Stream's battered share price.

But although it confirmed the interest, the company provided few details.

"In response to inquiries from interested parties, Service Stream has appointed a corporate adviser to evaluate the interest and conduct a strategic review," it said in a statement. "Further information will be provided as and when appropriate."

As well as the four-year Telstra operations contract, Service Stream also builds other telco networks, operates call centres and installs water and electricity meters, such as smart meters.

It is also a likely candidate to start construction work for the national broadband network.

A year ago, Service Stream shares were at $2.10 but have since sunk as low as 85.5. They jumped 9% in the last hour of trade yesterday to close 7.5 higher at $1.11.