telstra 3, page-9

I think it is too close to call.

Yes some poeple who took the offer may sell, but the real impact will be from the institutions.

Some will need to be buy if they are underweight the index weight which will be adjusted up based on the number of shares the government sells.

Since the institutions could buy up to Friday to get an entitlement, this could have driven the price up and now it is over there could be selling pressure.

I think the price will rise on Monday, however I really think you could argue either way.

Based on current interest rates you would think the installent receipts will trade at around a premium of 12% (8% a year) of the amount to be paid in 18 months ie about 20c to the current shares and based on Friday's close of $3.75 should trade at about $2.35 ($3.75 minus $1.60). This is not bad at an issue price of $2.00 for retail investors.