Monadelphous courts Service Stream: report

Engineering firm meets telco contractor to discuss buying a stake.

Engineering firm Monadelphous Group (MND) is considering the purchase of a stake in telecommunications contractor Service Stream (SSM), The Australian Financial Review reports.

According to the newspaper, the two companies met as Service Stream was preparing to exit national broadband network (NBN) joint venture Syntheo after problems rolling out the network.

Service Stream said it would lose $20 million due to withdrawing from the joint venture and forecast a fiscal 2013 earnings before interest, depreciation and amortisation loss of $13 million.

Monadelphous aims to diversify out of its mining-related business as the commodities boom finishes, the AFR reports.

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