Saturday, August 26, 2006

Telstra Limited Sale Finally

Telstra Limited ASX :TLS has had some news on its government ownership. It appears there will be a T3 and the Australian Government will sell off 8 Billion dollars.

This is going to be good for the company as it will remove the majority shareholder issue where the government can still effectively tell it what to do. It will be good for shareholders at the expense of the average user of the telephone system.

But would I buy this company ... definately not. The company will still have way too much regulation and the ACCC does everything in its power to oppose Telstra.

My recommendation is to avoid. Espeically now that the dividends look shaky.

Good luck Investing.

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