Just after iiNet scooped up Internode, we now have a Telstra communication to their staff, where they seem to be informing their employees that TPG could buy iiNet, which would see TPG jump into second position among Australian ISP's.
TPG already owns 7-percent of iiNet, so if TPG were to takeover iiNet, it shouldn't be a surprise. The exact words from Telstra, as provided from Delimiter:
"iiNet's $105 million acquisition of Internode, announced just prior to Christmas, will see it gain 190,000 subscribers, and spearhead TPG Telecom into third place among broadband providers behind Telstra and Optus," the company's update read. "In recent months, TPG Telecom has been building a stake in iiNet, which, according to market speculation, could be a precursor to a full takeover."
You'll notice Telstra say it would put TPG into third place, but Delimiter's own calculations put TPG into second place, post-acquisition. iiNet CEO, Michael Malone, when speaking to Delimiter, said that any takeover would have a big enough impact on the industry that the ACCC would likely be involved.