Fed: Telstra share price a warning against full sale Beazley

AAP General News (Australia)
08-28-2000
Fed: Telstra share price a warning against full sale Beazley

CANBERRA, Aug 28 AAP - Opposition Leader Kim Beazley today pointed to Telstra's languishing
share price as another count against full privatisation.

Mr Beazley said the price of Telstra shares, which are performing well below previous
highs, should be a matter of concern for the government although shareholders had gone
in with their eyes open.

"Dumping a whole ton of Telstra shares on the market in that set of circumstances is
unlikely to ameliorate concerns of those with the share price as it is at the moment,"

he told reporters.

"That gives us further confidence that we are correct in our view that Telstra ought
not be privatised."

Telstra shares recovered some ground today to hit $6.92 just after 1pm AEDT. Telstra
2 instalment receipts were at $3.89, well below the $4.50 paid last year by private investors.

The company is hoping this week's profit announcement will provide a stockmarket boost
as Telstra 2 investors prepare to pay the balance due on their stock by November 2.

The company is expected to post net profit of $3.9 billion, which would be the largest
in Australian corporate history.

AAP kmh/mfh/nm

KEYWORD: TELSTRA (CARRIED EARLIER)

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