Jantimoot - if you'd done your homework, you'd know Medibank has provided dividends up to $500m a year to the govt. They're intending on selling it off for a maximum $4bn, but many are suggesting as little as $2bn. Couple this ridiculously low PE with the inevitable scope to cut costs (being a govt owned entity), and you're talking about practically giving it away.
So for the sake of as little as $2bn (saving interest of approximately 3% or $60m), the govt. is forgoing an annual dividend of hundreds of millions, and up to half a billion.
The argument that it's an inefficient use of govt resources is a furphy, so long as it's flogged off for such a paltry return.
