Business Services Industry
Telstra a short-term deal only.
Australasian Business Intelligence, October, 2006
Byline: Alan Kohler
Oct 03, 2006 (The Age - ABIX via COMTEX) -- The Australian Government has begun the marketing effort for its full and final privatization of telco Telstra. As almost all stockbroking houses in Australia will be involved in the massive sale, it is hard to get reliable advice as to the real value of the shares. While the 2006-07 dividend of $A0.28 per share is an incentive to buy the stock, the long-term future of Telstra is unclear. It relies heavily on CEO Sol Trujillo being able to restructure the company as its fixed-line telephony business drops. The estimated 12,000 job cuts involved are one reason behind Finance Minister Nick Minchin selling the Government's stake now. A frosty relationship between Trujillo and Australian Prime...
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