Telstra CEO Sees Asian Interest In Company Privatization
HONG KONG -(Dow Jones)- Telstra Corp. Chief Executive Sol Trujillo said Friday Asian investors remain interested in buying shares of his company as it is privatized, despite regulatory uncertainties.
But Trujillo said investors are keeping a wary eye on the situation and their interest could wane if Telstra gets a negative outcome in its efforts to get the prices it wants when selling access to rivals onto its fixed-line system.
The Australian Competition and Consumer Commission wants to split prices into four levels, forcing Telstra to charge rivals, including Singapore Telecommunications Ltd. (T48.SG), cheaper prices in densely populated areas and higher prices in regional and rural areas.
Telstra claims the proposals could wipe hundreds of millions of dollars off revenues over coming years and wants the government in Canberra to intervene in the decision and allow it to charge a flat rate.
Trujillo said he expects a clearer picture to emerge in the first two weeks in April.
"We are ready for whichever path the government chooses," Trujillo told reporters at a news conference here on the completion of the merger between Telstra's Hong Kong mobile unit, Hong Kong CSL Ltd., and New World PCS Ltd.
The Australian parliament passed legislation last year giving the government authority to sell its remaining 51.8% stake in Telstra, with the process of selling the third tranche known as T3.
The sale of the A$26 billion (US$18.6 billion) holding is expected to take place in October or November.
-By Ernest Kong, Dow Jones Newswires; 852-2802-7002; ernest.kong@dowjones.com
-Edited by Sharon Buan
(END) Dow Jones Newswires "
Posted to the site on 31st March 2006