CANBERRA - The head of the Australian Federal Government's Telstra Future Fund says the fund will not seek to control Telstra once it becomes a significant shareholder.
The fund is likely to hold about a one-third stake in Telstra as part of the Government's imminent T3 sale.
It has been suggested that still represents a controlling interest in government hands.
The fund's chairman, David Murray, says it will defend Telstra's independence while being an interested shareholder and will conduct expert analysis of the company like a normal institutional investor.
"Our starting position is more likely to be that we would not seek to exercise control of the company," he said.
"But we would want to act as a wise investor.
"Remember, any investor in shares has not only the share, but rights attaching to those shares.
"The full economic value of those shares is not achieved without having those rights."
After hitting a low of A$3.43 on Monday, Telstra shares closed at A$3.59 yesterday.
- RADIO AUSTRALIA
Future Fund 'won't seek control' of Telstra
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