Australia Government T3 Adviser:Close Attention To ASIC Charges
SYDNEY -(Dow Jones)- The Australian government will watch closely the Australian Securities & Investment Commission's court case against Citigroup Global Markets Australia, which is a member of the panel appointed to sell the government's remaining stake in Telstra, a spokesman said Friday.
"Clearly we will pay close attention to this matter," said Ian Smith, an external media adviser to the government on the sale of its remaining 51.8% stake in Telstra.
A spokesman for Finance Minister Nick Minchin, who is charged with the Telstra sale, declined to comment.
Citigroup is among 11 banks on the selling panel named to help sell the government's stake.
The government has hired investment bankers from ABN AMRO Rothschild, Goldman Sachs JBWere and UBS to lead the share sale, slated for October or November.
ASIC said earlier Friday it filed civil penalty proceedings against the local arm of Citigroup, saying an investigation into Citigroup has identified substantial proprietary trading in Patrick Corp. shares on Aug. 19, 2005, the last business day prior to Toll Holdings making an announcement on its bid for Patrick to the market.
Citigroup acted as an advisor to Toll in its A$4.6 billion takeover bid announced Aug. 22.
Citigroup has denied ASIC's claims. The matter is due to go to the Federal Court on April 28.
-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 31st March 2006
