State to cut Telstra value in 06-07 budget

8 May 2006

The Australian government is expected to cut the value of its majority stake in incumbent telecoms operator Telstra by 6% to AUD25 billion (USD19 billion) in its 2006-07 budget, the Australian Financial Review reports. The government, which is currently finalising the details of the sale of its 51.8% stake in the telco, is expected to cut the price of its holding from AUD4.13 to AUD3.87 per share to reflect the operator’s declining fortunes in the face of increasing competition.

Australia, Telstra (incl. Belong)