telstra now, page-24

shares to take off. pay more later “Macquarie Bank chief economist Richard Gibbs said he suspected there would be an improvement in the telco's share price on the prospect of an eventual sale.”

Investors would be shooting themselves in the foot by bidding Telstra up big time prior to any sale of the Governments holding.
Consider this - AllOrds are at record levels. Possibility for a correction in 2005.
Bid TLS up now and in the months to come and the higher the price everyone, including retail & institutional investors, will have to pay for the balance of Telstra.
At current levels the Governments stake is worth ~$15bil.
Whatever the retail component is going to be of the total share parcel on offer it will, in any case be a lot of money to take out of Mum & Dad’s available cash.
Is there going to be a benefit in holding TLS when they get around to offering the retail part of the sale?
Perhaps there will be a firm allocation to existing holders at the record date on a prorate basis, but for reasons of politic the Government will make sure that every Australian get an opportunity to buy stock.
Some will not touch TLS again, others who bought at the second trance will buy in order to average down.
Whatever, like last time the small investors who wants to get in will buy in every name in the family including the cat and the dog using a residential and postal address on multiple application forms.
Any comments??