us government blasts telstra pricing bid, page-2

alan kohler says 't3 is dead' 6/4/06

"Telstra is down another 1c to $3.68. Prime Minister John Howard indicated on radio this morning that the full privatisation of Telstra could be delayed if the share price is too low. “We’re not in the business of selling at any cost…just for the sake of getting it off the books” he said this morning on ABC radio. He added the T3 sale will occur at the most appropriate time when it will benefit both shareholders and the company.

Some people believe these comments indicate the government may place Telstra into their Future Fund until the share price recovers to a more attractive level. Personally I think we can be sure that T3 is dead and that the Government's shareholding will be put into the Future Fund, where it will stay for while. That means will stay weak and won't be boosted artificially by demand ahead of the float. "