Stake Sale Fails to Get Green Light
DOW JONES NEWSWIRES
The Wall Street Journal
Wednesday, August 23, 2006
CANBERRA, Australia -- The Australian government failed to
give the green light to a proposal for the US$17 billion
sale of its remaining 51.8% stake in telecommunications
The cabinet discussed the proposed sale, but didn't sign off
on the deal.
"The matter remains under consideration," said a spokesman
for Prime Minister John Howard.
People familiar with the situation said Canberra is
considering a scaled-back sale, with an offering that would
raise about 10 billion Australian dollars (US$7.63 billion)
from retail and institutional investors. The rest of the
government's stake would go into a fund set up to meet
public-service pension liabilities.
Telstra shares fell six Australian cents, or 1.7% to A$3.45
in domestic trading yesterday.
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