Fed: Gov to sell $8 billion worth of Telstra

AAP General News (Australia)
08-26-2006
Fed: Gov to sell $8 billion worth of Telstra

The federal government will sell about a third of its controlling stake in Telstra
in a public float later this year .. and park the majority of its stock in the Future
Fund to sell off over time.

JOHN HOWARD made the surprise announcement late yesterday afternoon.

About eight billion dollars worth of government stock will be sold in a public float
in October and November .. with the sale open to retail and institutional investors in
Australia and overseas.

The move caps a tumultuous week for the company .. which saw its share price hit record
lows and a public slanging match break out between the government and the company's senior
executives.

At the close of trade yesterday Telstra shares closed at three-dollars-50 .. bringing
the total value of the government's 51.8 per cent holding in the telecommunications giant
to 22.6 billion dollars.

AAP RTV nb/pv/wz/cp

KEYWORD: TELSTRA (CANBERRA)

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