Government to use Telstra sale proceeds for acquisitions

17 Mar 2005

The Australian government has revealed that it will use the AUD30 billion (USD23.8 billion) raised from the privatisation of incumbent telco Telstra to buy shares in other companies. Opponents have argued that the proceeds should be used to fund road and rail projects.

Meanwhile Telstra has announced that it will fight against any moves made by the government to force it to fund a share buyback ahead of its privatisation. The government has suggested a buyback worth up to AUD10 billion as a way to reduce the volume of shares it will need to offer to global equity markets when the 51.8% share is sold.

Australia, Telstra (incl. Belong)