Australia to Sell Telstra Stake

Bloomberg News

The Australian government said a further 16.6% of Telstra Corp., the nation's top-ranked telecommunications company, will go on sale in mid-to-late October, raising an estimated $10 billion. "This sale will be the largest share offer in Australia's history and one of the largest offerings of its kind in the world this year," Finance Minister John Fahey said. After the sale the government will continue to hold about 51% of Telstra. A maximum of 2.132 billion shares in Telstra will be sold, valuing the stake at more than $12 billion based on the company's closing stock price Friday. Investors, though, expect the government to entice them by selling the shares for less than the current price.

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