The market had expected the energy utility to increase its cash reserves with around a $110 million auction of its interest in the company via an institutional bookbuild.

However, Alinta chief executive Bob Browning said there was no shareholder benefit in a sale for the current price on offer.

"Alinta's primary objective is to build value for our shareholders. We believe that the price offered under the bookbuild process was not sufficient to reflect the inherent value of Uecomm and its strategic importance in the telecommunications sector."

Yesterday Uecomm had suspended trading for 48 hours before announcing Alinta's impending sale of its 66% via a bookbuild to institutional and sophisticated retail investors before today's about face by Alinta.

Alinta inherited its stake in Uecomm last year as part of its takeover of Aquila's Australian assets.