***** telstra plunges over uncertainty *****...

***** telstra plunges over uncertainty ***** http://finance.news.com.au/story/0,10166,17389679-462,00.html

Telstra plunges over uncertainty

From: By Nicki Bourlioufas
November 28, 2005

TELSTRA shares slipped to all-time lows today as investors sold down the telco giant over uncertainty about its earnings and its full privatisation.

Shares in Telstra (tls.ASX:Quote,News) plummeted to $3.87 in late afternoon trading, their lowest level ever, and down six cents on their previous close.
Telstra shares fell to a previous all-time low on November 24 amid concerns the Federal Government, which owns 51.8 per cent of the telco, was likely to force Telstra to lower the price at which it charges rivals to access its copper-wire phone network.

However, the stock was still the most popular purchase on the Commsec retail stockbroking website today as some investors bet it will eventually rise.

The share losses make the possibility of the full privatisation of Telstra in the near term less likely. The Government values Telstra at $5.25 a share on its books but appears unlikely to get this price.

The exact timing of the sale of the Government's remaining stake is unclear though advisers have been appointed to investigate the sale.


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Around 80 per cent of people do not intend to participate in the third tranche (T3) sale, a poll of NEWS.com.au readers found in September.
The poll, carried out by Coredata and NEWS.com.au, found only 20 per cent of respondents intended to invest in the third and final sale of Telstra.

Of those who intended to participate, 64 per cent said they would only buy T3 shares at prices up to $3 a share. Just 27 per cent of people would buy the shares between $3 and $4.

Of 15 stock brokers recently surveyed by Thomson Financial, only three rate the stock as a buy, according to Consensus data. However, 10 of the 15 brokers surveyed think the stock should be held, while only two think it should be sold.

Thousands of investors made huge losses on the second-tranche privatisation of Telstra. While the second-tranche Telstra (T2) shares were sold for a value of $7.50, they dropped below that level in 2000 as shareholders had to make full payment on the second-tranche Telstra (T2) sale. Telstra shares have declined since then.