Forum Archive Index - June 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

From: Richard Hooper <hoop@ihug.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: 6 June 2000 9:48 PM
Subject: [sharechat] Re:- Telstra


> News out today that Telstra could be released from strict competition
rules
> put in place in 1997 which has restricted it's performance .The rules will
> be relaxed if the govt can be convinced that competitors has evolved
> sufficiently for the regulatory system to be replaced by a more relaxed
> general approach.
>   see  http://afr.com.au
>
>  I wonder if in the near future this could apply to Telecom.


Hi Hoop, the situation between Telecom and Telstra is actually quite
different. What is holding back Telstra at the moment is that is cannot by
law water down the Aust. govt's 50.1% ownership of the company. This means
that they are forced into financing all of their latest acquisitions, and
any in the future, through issuing debt, rather than equity. As their
current Eurobond issue is beginning to show, this is getting to be very
expensive.


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