Listen to Telstra shareholders: Don Argus

From
http://www.news.com.au/business/stor...88-462,00.html

ONE of Australia's most senior businessmen, BHP Billliton chairman Don
Argus, has bought into the debate on splitting Telstra by warning that the
views of the telco's hundreds of thousands of shareholders should be heeded.

"I'd be starting to think (about) what the shareholders are saying if I was
sitting in politics somewhere," Mr Argus said yesterday.

"I don't know how many shareholders Telstra have got these days, whether its
600,000 or 700,000 shareholders, and you need to sort of take notice of what
they're saying."

Mr Argus is a director of one of Telstra's biggest investors, the Australian
Foundation Investment Company, which has formally opposed the break-up
legislation in a submission to a Senate inquiry, The Herald Sun reports.

Under the Rudd Government's plan, if Telstra doesn't agree to break into
separate retail and wholesale companies, it will have to sell its Foxtel
half-share, offload its hybrid fibre coaxial cable network, be banned from
buying mobile phone spectrum for 4G and be functionally separated.

But Mr Argus said shareholders should be rewarded for any asset loss.

"I'm a shareholder and I have to say to you that if someone takes assets out
of my balance sheet and doesn't reward me for it with a premium, I've got to
think hard about what are we trying to achieve?" he said after a lunch
address in Melbourne.

Mr Argus' comments come after some of Telstra's 1.4 million shareholders,
big and small, recently raised concerns over the break-up plan.

AFIC, which has a $160 million-plus Telstra stake, says Australia's
investment standing could be threatened if the legislation is passed because
international investors will perceive "substantially heightened sovereign
risk if the Australian Government can act arbitrarily in this way".

Aussie Blob wrote:

> From
> http://www.news.com.au/business/stor...88-462,00.html

> ONE of Australia's most senior businessmen, BHP Billliton chairman Don Argus, has bought into the debate on splitting
> Telstra by warning that the views of the telco's hundreds of thousands of shareholders should be heeded.

> "I'd be starting to think (about) what the shareholders are saying if I was sitting in politics somewhere," Mr Argus
> said yesterday.

You arent.

> "I don't know how many shareholders Telstra have got these days, whether its 600,000 or 700,000 shareholders, and you
> need to sort of take notice of what they're saying."

Nope, the coalition aint gunna be reelected any time soon.

> Mr Argus is a director of one of Telstra's biggest investors, the Australian Foundation Investment Company,

His problem.

> which has formally opposed the break-up legislation in a submission to a Senate inquiry, The Herald Sun reports.

Conroy and Rudd just yawned.

> Under the Rudd Government's plan, if Telstra doesn't agree to break into separate retail and wholesale companies, it
> will have to sell its Foxtel half-share, offload its hybrid fibre coaxial cable network, be banned from buying mobile
> phone spectrum for 4G and be functionally separated.

> But Mr Argus said shareholders should be rewarded for any asset loss.

Taint gunna happen.

> "I'm a shareholder and I have to say to you that if someone takes
> assets out of my balance sheet and doesn't reward me for it with a
> premium, I've got to think hard about what are we trying to achieve?"
> he said after a lunch address in Melbourne.

Think long and hard all you like.

> Mr Argus' comments come after some of Telstra's 1.4 million shareholders, big and small, recently raised concerns over
> the break-up plan.

And Conroy and Rudd just yawned.

> AFIC, which has a $160 million-plus Telstra stake, says Australia's
> investment standing could be threatened if the legislation is passed
> because international investors will perceive "substantially heightened sovereign risk if the Australian Government
> can act arbitrarily in this way".

And Conroy and Rudd just yawned.

>From
>http://www.news.com.au/business/stor...88-462,00.html

> ONE of Australia's most senior businessmen, BHP Billliton chairman Don
>Argus, has bought into the debate on splitting Telstra by warning that the
>views of the telco's hundreds of thousands of shareholders should be heeded.

>"I'd be starting to think (about) what the shareholders are saying if I was
>sitting in politics somewhere," Mr Argus said yesterday.

Sorry Don, but this is too important an issue for the nation to allow itself
to be held hostage to the opinions of Telstra shareholders (or as Rod might
say, anybody stupid enough to have bought into the floats). While their
opinion may be noted, I don't believe it should carry a lot of weight.

>But Mr Argus said shareholders should be rewarded for any asset loss.

>"I'm a shareholder and I have to say to you that if someone takes assets out
>of my balance sheet and doesn't reward me for it with a premium, I've got to
>think hard about what are we trying to achieve?" he said after a lunch
>address in Melbourne.

Rubbish. You buys your shares and you takes your chances - like everyone
else. Shareholders in any company must take the risk that the value of
their investment will be affected by an unfavourable economic climate
or unfavourable legislative action. Telstra shareholders in particular
should have been aware of the unique position of Telstra, its network
assets and the legislation within which it operates. Structural or
operational separation is an option which has been discussed forever,
so don't act all surprised about it now.

Nick.

You never listened Phil