Australia's Telstra Rejects Legal Claim On Disclosure

SYDNEY -(Dow Jones)- Australian telecommunications company Telstra Corp. said Friday it will reject a legal claim being pursued in the Federal Court regarding its disclosure practices.

Law firm Slater & Gordon intends to bring proceedings against Telstra in the Federal Court, representing at least 50 shareholders relating to Telstra's disclosure to the Australian Stock Exchange on Sept. 7, 2005, of a document that was discussed with the federal government the previous month.

The document forecast a drop in earnings and revealed underspending of A$3 billion on operating and capital expenditure in the previous three to five years.

In a statement, Telstra noted that the Australian Securities & Investment Commission investigated Telstra's compliance with its disclosure obligations but announced last month that it would take no further action.

"Telstra is surprised to see a law firm display interest in its disclosures over the same period already examined by ASIC," the company said.

"In the interests of its shareholders, Telstra will vigorously defend the proposed claim," it said. "Telstra rejects any suggestion that its continuous disclosure policies are inadequate."

-By Lyndal McFarland, Dow Jones Newswires;

61-2-8235-2957; lyndal.mcfarland@dowjones.com

-Edited by Paul Godby

(END) Dow Jones Newswires "

Posted to the site on 20th January 2006