smoke and mirrors

renting the ducts over 20-25 years, customer migration payments over time etc etc. This is all about TLS and the Rudd Government trying to make the headline number look acceptable to TLS shareholders.

In essence the Government wanted to pay very little, and for Telstra to take that payment in scrip (which would have ultimately been worth even less). Instead, over a few reds no doubt, Conroy probably said:

" Hey David, my boss really needs to look like a winner on something - anything, and very soon. If I can deliver the only win during his first term, then I maybe looked upon as something of a star. Oh and given that he is about to do a backflip on the resource tax, to exclude existing mines thereby missing out on all that juicy budgeted revenue, we don't have the budget to pay for your network assets. I'm clueless please tell me how to do it!"

Thodey:

"shikes, I too need a win and quickly. My shareholders feel that they have been right royally bent over by your boss. Notwithstanding this I can see he is doing it tougher than me. That aside I need to show my shareholders a juicy big number that I have gallantly negotiated and delivered. When it comes to your funding problem, i'm sorry i cannot take your scrip, because a wise Mexican once told our shareholders it was worthless. So having thought this thru why don't we spread this payment over decades and quote the total payments as the headline number. this saves my job and it allows Kev to do his resource tax backflip. Your boss can then say that he does not understand all this talk re sovereign risk and that both the forced seperation bill, and the retrospective resource rent tax were simply a really clever negotiating tactics. What do you think Steve?"

Conroy:

"your brilliant David, Rudd the Dudd will love this,thanks mate. Can I buy you a drink?"

The biggest load of smoke and mirrors we will ever see.

Plus as a person that sold out of my significant amount of June $3.14 TLS calls on Friday afternoon, I will be seeking ASIC look at trading late Friday, looked ominously inside!!!

Ah life is never boring!