[LINK] AM today : Bob McMullin on Telstra breakup option
Fri, 04 Oct 2002 08:34:23 +1000
AM should have a transcript of Bob McMullin on some time today about
Labor's position on Telstra breakup into infrastructure and services
businesses. Parallels Link member comments recently.
There is an interesting quote when the point about the effect on current
shareholder price was mentioned as being underminded by this
approach. Bob: it's only a problem if the vertical integration is
providing an unnatural subsidy /benefit in some way and that is the point
of the criticism of unfair competition.
I.e. you can't have it both ways - either there is is open equal
competition to other service providers or there isn't. Right now there isn't.
also, the comment from the Government [in this case Kemp as Acting
Minister] was that Labor was trying to sell off the profitable bits. If
it's the profitable bits that would come into private ownership, that is
shareholders, and profit influences share price and dividends, isn't that a
good thing for current shareholders as well? Why isn't this being
understood, or is my logic flawed?
Or is the problem really that the government doesn't want to take on the
burden of the cost of infrastructure and lose out on its cash cow at the
same time [those same profits and dividends that currently come back to the
Also on AM, NFF is coming out against further sell off in the current
review [can't remember the bloke's name - Esten?]
Melbourne, Victoria, Australia
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