TLS telstra group limited

Senaris,I think it is completely in the hands of Rudd and co....

  1. 307 Posts.
    Senaris,
    I think it is completely in the hands of Rudd and co. Telstra have a bottom line number (they say its 12 Billion) I suspect TLS would accept a figure less than that but it would have to be north of 10 Billion. Below a certain figure TLS probably recognise that it would be a hard sell to shareholders, and so their hands are tied. Below a certain figure it makes more sense to compete with the NBN. The government are too arrogant to realise this.. Its negotiations 101 -if you want to do a deal, the other party must feel like they are winning as well. Conroy seems to be so hard nosed about a figure of 8 Billion, perhaps a figure around 10 billion may seem like a win to shareholders. But as I said above, Rudd doesnt have room in the Budget to put in the extra few Billion. More accurately the cynical man wont do it unless their is votes in it. And that is the key I think- will they judge that a NBN deal to take to voters is worth the extra votes compared to the impact on the budget. Perhaps a deal can be miraculously struck soon after the budget has been announced?? I am not sure how that would play out.

    I think the TLS share price is trading below value due to uncertainty. Any deal will remove the uncertainty and I suspect an immediate re rating of around 20%. Beyond that management need to show some growth initiatives. What will they do with their cash? Return it to shareholders, a share buy back? Do they have an off shore strategy for expansion? There are also huge productivity gains to be had, management is bloated and innefficient, an NBN deal could be a catalyst to "restructure"


 
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$4.84
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$4.82 $4.85 $4.81 $76.73M 15.87M

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Price($) Vol. No.
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Last trade - 16.14pm 07/07/2025 (20 minute delay) ?
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