Telstra: Shareholder Interests Remain Board’s Main Priority
MELBOURNE (Dow Jones)–Telstra Corp.’s (TLS) senior management Tuesday sought to reassure investors that their key focus is on preserving shareholder value as the company continues to negotiate with Canberra on proposed changes to its structure. Earlier this month, the Australian government it wants Telstra to either voluntarily split its retail operations from its network assets or face tighter regulations, asset divestments and being cut off from taking up more wireless spectrum – starving it of growth.
Communications Minister Stephen Conroy has said that the planned moves will improve competition in the Australian telecommunications sector, which Telstra dominates.
Telstra reiterated in a letter to shareholders that it is disappointed that the Government deemed it necessary to introduce legislation to change the company’s structure.
“This legislation will mean a significant change for Telstra and the industry,” Telstra Chief Executive David Thodey and Chairwoman Catherine Livingstone said in the letter.
“We have engaged with the government and we have a process to work through the issues; rest assured that throughout these negotiations we will do everything possible to represent the interests of shareholders.”
The company has “been encouraged” by the “many emails and letters” it has received from investors “expressing concerns with the government’s actions”.
The group said it is continuing negotiations with the government “in a much more constructive and positive manner”, and the interests of shareholders will remain an “overriding priority” for Telstra’s board and management.