By Tom Pullar-Strecker,

Hawaiki Cable has suffered another disappointment in its bid to build a new $500 million communications cable to New Zealand.

But chief executive Remi Galasso says he won't throw in the towel.

Hawaiki Cable was holding talks with New York private equity firm Stonepeak International Partners which could have provided the remaining $150m it needed for its trans-Pacific cable.

However, the negotiations have not resulted in an agreement. Stuff learned about the confidential discussions after being accidentally copied in on an email between the parties in November.

Hawaiki had signed up a new “tier one” United States telecommunications company as a customer in January, meaning it would require less equity funding than previously envisaged, he said.

Other customers which have agreed to pre-buy capacity on the cable include Vodafone and Crown-owned research network operator Reannz.

Hawaiki's proposed 13,127 kilometre cable would link New Zealand and Australia to the United States, via Hawaii, also connecting several other Pacific islands.

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