Inc.: Too risky for mom
By Jane Hoback & Gil Rudawsky
Rocky Mountain News
Saturday, April 29, 2006
Too risky for mom
The turbulent sale of U S West to Qwest in the late 1990s
must seem like a cakewalk to Sol Trujillo these days.
The former U S West CEO now runs Telstra, Australia's
public- private phone company, and the government wants to
sell its remaining 51.8 percent stake as early as October.
Trujillo told Bloomberg News that running Telstra has turned
out to be his hardest job.
Since becoming CEO in July 2005, Trujillo, 54, has struggled
to hold onto his customers, combat new competitors and shore
up Telstra's sagging stock. The upcoming $25 billion-plus
stock sale is likely to be the third-largest of all time.
With the government as a majority stakeholder, Trujillo has
had his hands full, and he wants the prospectus for this
year's stock sale to carry warnings about the financial
impact of regulation.
How onerous is it?
Trujillo's group managing director, public policy and
communications, and former U S West colleague, Phil Burgess,
67, has said he wouldn't recommend Telstra stock to his
88-year-old mother, given current regulations.
Assistant Business Editor Jane Hoback and Deputy Business
Editor Gil Rudawsky write about local business talk that
doesn't necessarily end up in quarterly reports. They can be