Telstra shareholders: Give us a fair price

By Ben Grubb, Munir Kotadia on Nov 4, 2009 6:11 PM
Filed under Telco/ISP

iTnews interviews Telstra shareholders.

Telstra CEO David Thodey getting ready for business at the company's AGM in Sydney today.	Telstra CEO shares a few words with Ben Grubb from iTnews.	Telstra CEO David Thodey was kept very busy as shareholders voiced their concerns about the ...
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Telstra shareholders have expressed disgust at the Federal Government's plan to separate the company during its annual general meeting.

Other shareholders expressed concern over negotiations between Telstra and the government aimed at vending in assets for the National Broadband Network (NBN).

Joan Templeman, a Telstra shareholder, said she was "quite angry" at the way the government were "holding a gun at Telstra's head".

"If it wants to take-over Telstra's assets to build its own network I think they need to pay a realistic price for them," she said.

Telstra CEO David Thodey could not promise shareholders a "mutually acceptable agreement" with the government.

"Can I promise that a mutually acceptable agreement will be reached? No.

"Do I think there is a pathway to such an agreement? Yes," Thodey said.

16 comments in this discussion

"Share price is based on perception and degree of uncertainty as well asset value. It's hard to raise share price in Australia even if profit, sales and margins are all up, which they are by ..."

By Bob

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Comments: 16

scan06disk Nov 4, 2009 7:19 PM	"In the T3 round, the Telstra share price for retail investors was much lower, at $3.60 – which represented a massive loss for T2 investors(from $7.40)" It was Telstra's own fault that the share price fell during the 90's, why in the world should the government pay $7.40... ?, they aren't even worth $4... knuckle head ! lol
mick09 Nov 5, 2009 12:51 AM	ROFL scan06disk! With investment advice like yours, who needs Sen Conroy and the Future Fund - check your facts - methinks a little too much blood (or beer?) to the brain. Let's blame the GFC on Telstra too, while we're at it? Is the "06" your "retry count" or the "use by date"?
scan06disk Nov 5, 2009 1:38 AM	Haha its u again mick09, you never stick to the point do u ? I'd suggest sorting out your personal life issues first..., indulging in politics is far beyond your abilities mate... BTW "06" is the year 2006, simple things are too hard for you to comprehend, my immature friend... ;)
mick09 Nov 5, 2009 7:20 AM	Mate, TLS shares rose through the 90's, peaking at just over $9 in Nov 1999. They steeply declined thru 2003 and have wandered pretty aimlessly since till the FF/Conroy double whammy, recently. Like I say, do your research. As for what passes for "politics" lately, I'll leave that to you and your mates - those that aren't past their use by dates ;-).
scan06disk Nov 5, 2009 9:11 AM	Mick, u yourself are saying that TLS share prices fell due to their own economical conditions, and was in no way the fault of the Government, So why should the Gov. NOW pay the shareholders the highest possible rate TLS shares had ever seen, when it had never even once regained or maintained that price thus far, for what its worth..., i dnt get it.... :S
singo79 Nov 5, 2009 7:56 PM	I'm with you scan06disk, it is not up to the Federal Government to bail out Telstra Shareholders, it is their own damn fault for holding onto them for too long. The main hit to the Telstra share value was the result of Telstra's own Management style and board of directors. The writing was on the wall over 18 months ago, but the shareholders chose not to see it, rather living in denial that the share price would someday rebound. I approached a family member many, many months ago and suggested that they sell their Telstra shares whilst they are currently at a good price as the share price was going to drop. Blind Freddy could see the share price was going to plummet! Honestly, how long do you think a Federal Government is going to put up with a bunch of cowboys such as Telstra? The Howard Government was too inept to sort the problem out and that is why they were kicked out of Government. Had the Howard Government not sold their/our (considering it was owned by the Australian Taxpayer) controlling share of Telstra then we would not be in the situation we are in today. So if we are going to get political on this debate, the blame should be laid squarely with the Howard Government and not the Rudd Government. The Rudd Governement have at least got the balls to tackle the situation, considering it is in the best interest of all Australians. There are more people that want Telstra separated and are happy with that then there are against it!
singo79 Nov 5, 2009 8:02 PM	Oh, I forgot to mention above, that the family member I spoke to about selling their Telstra shares decided not to sell them when I suggested. I was quite clear as to the direction of the proposed telecommunication industry and that the likelihood was that Australia would go to a Fibre broadband network. Now, that family member has the cheek to whinge and whine about the share price after being told that this was exactly what was going to happen. Typical Telstra shareholder I'm afraid... ignorant and have an overwhelming sense of self-importance that the Australian Government should bail them out, or at least pay them an over exaggerated price for their archaic infrastructure (ie. copper network).
mick09 Nov 6, 2009 12:25 PM	At last - the choir starts up. "singo79" as shrill tenor to "scan06disk" as basso profundo. Never let reality get in the way of an opportunity for political sledging. Mates, thanks for your honesty, you have both established your credentials as political hacks with no knowledge of the share market - claiming "Telstra share price fell during the 90's", "writing on the wall over 18 months ago". Trouble is you're just to lazy to research your hysteria. The 90's, of course was TLS boom-time and 18 months ago TLS was sailing very comfortably through the GFC as other shares crashed. Do your research. Any newspaper will give you a history of share price movements. @scan06disk, you did exceed your error retry count. @singo79, this is ITnews, try and lift your game a little.
mick09 Nov 6, 2009 12:33 PM	Ps. the shareholders seem to think the Government is trying to appropriate/nationalize/steal something they only just bought from the government (final T3 payment to Rudd and Conroy was 15 May 2008). How silly of them.
scan06disk Nov 6, 2009 1:33 PM	Mick09 u seem to have a finger stuck up ur Ahem over this Telstra debate...., BTW we don't care abt the 90's and ur years of research over this... lmao We're looking at the present economic conditions("fair price") and depreciation.... You must be one really pissed off shareholder, with a whole lot of hangups and WORDS to go with it... lol Save your breath this is a news website, not the Sydney Opera house... ROFL
mick09 Nov 7, 2009 8:13 AM	Sorry scan06disk, the Aria prize must go to Singo79 for his bravura performance - nothing blocking his "ur Ahem" ;-) I know you don't care, scan06disk - you're a professional - any old tosh, any old tosh, another day, another dollar. Curious moniker, "scan06disk", what did happen way back in 2006? Whatever it was, just chuck it in the recycle bin, mate. There's more to life than recycling effluent. Have a great day! :-D
scan06disk Nov 7, 2009 6:11 PM	haha ur weird..., lets leave it at tht lolz Back to the topic... Telstra Needs to Split at whatever cost ! thts my opinion u can suck on urs micky09 ! G'Day ! ;)
mick09 Nov 9, 2009 12:40 AM	Rest easy old trooper - Conroy and Quigley "at whatever cost"!!! Well, yes, that is what they are really saying. See, our opinions aren't so far apart - I'd just like Telstra left alive "to keep the bastards honest" ;-)
Oldsniper Nov 9, 2009 3:16 AM	Telstra's shareholders want A fair price for being suckered by Howard & Costello....good one guys HAHAHAHHAHAHHAHAHHA
mick09 Nov 9, 2009 9:17 AM	Woken from your doze, Oldsniper? Lots of reading to catch up on, isn't there? Telstra shareholders paid Rudd, Tanner and Conroy the last installment of T3 a bit over a year ago (May 2008).
Bob Nov 9, 2009 11:22 AM	Share price is based on perception and degree of uncertainty as well asset value. It's hard to raise share price in Australia even if profit, sales and margins are all up, which they are by substantial amounts.