This is an old article but it does show that our CEO is wise and...

This is an old article but it does show that our CEO is wise and not easily taken for a ride
which should give us the confidence in his ability with a future buy back a real possibility

Telstra’s failure to secure a guarantee from partner San Miguel on a full refund on its investment in case of regulatory troubles forced it to ditch its $1 billion mobile joint venture in The Philippines, according to a report.

According to the Philippine Daily Inquirer, negotiations fell through after Telstra insisted on a guarantee that its investment be returned if the venture ran into problems, a condition that San Miguel was unwilling to fulfil.
Telstra chief executive Andrew Penn said on Monday that achieving the right risk-reward balance was crucial during the negotiations and its push to secure its capital seemed prudent given that there was ample risk of regulatory action with regards to San Miguel’s spectrum assets.
With the proposed network powered by 700 MHz spectrum, owned by San Miguel, the local incumbents PLDT and Globe Telecom had threatened to get the regulator involved and force San Miguel to farm out the spectrum. Telstra declined to elaborate, with a company spokesman telling The Australian that an investment decision of this magnitude was bound to generate speculation.

However, the report confirms sentiment in the local market that the telco has managed to avoid a potentially bruising misadventure in the country. With the San Miguel deal now out of the picture attention is turning to capital management with some analysts insisting that Telstra should look to return excess capital to its shareholders.
According to Morgan Stanley analyst Mark Goodridge, walking away from The Philippines is a step in the right direction for Telstra when it comes to capital allocation but the telco needs to return capital to shareholders.
However, Telstra shareholders shouldn’t hold out hope for a special dividend with UBS analysts tipping a buyback as a more likely prospect, citing Telstra’s excess cashflow of $2.2bn, and the telco’s current share price travelling below the $5.34 at which the last buyback was conducted.
Meanwhile, CLSA analyst Roger Samuel said that pulling the pin on the San Miguel deal highlighted a disciplined approach from Telstra’s senior management.
However, the region is still crucial to Telstra’s long-term growth and Mr Penn reiterated that he is committed to making acquisitions and alliances in the region. The general consensus in the market suggests against another big-bang investment from Telstra, with the telco expected to take a more nuanced approach and focus on opportunities in the enterprise space rather than consumer-focused opportunities.