The Telstra announcement about remuneration changes was just a proposal. Negotiating 101 you come in lower than what you anticipate and then end up somewhere in the middle ground. Granted VTG is in a weaker position but they still hold 1/3 of all Telstra stores and with more competition looming on the horizon for Telstra I would think they would be more concerned with retaining market share and customer satisfaction than squeezing a few million out of VTG. The last thing they want is for their customer service to drop and give their current customers reason to jump ship..once they reach an agreement on rem changes my bet is that it wont be as bad as initially proposed and we will see a re-rate. Thoughts?
VTG Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
