Telstra sale 'still on but not at any price'

John Howard

CANBERRA - The Australian Government is still committed to the full sale of its 51.8 per cent stake in telecommunications giant Telstra, says Prime Minister John Howard.

"We've yet to make a final decision on the timing of the sale. We are still committed to a full sale of the Government's remaining interest in Telstra," Howard told Australian radio, adding that the Government would not sell at just any price.

Howard's comments came after Finance Minister Nick Minchin was quoted as saying a retail share offering of Telstra was looking less likely this year.

Retail investors are expected to form the cornerstone of any sale of the Government's A$24 billion ($29.5 billion) stake in Telstra, which investment bankers have recommended take place in October or November.

Minchin was quoted in the Australian Financial Review on Monday as saying the impasse over regulation made a retail sale less likely this year, or before the next election, due in the second half of 2007.

- REUTERS