Offer feeds on Telstra shareholders' fear

 

Buying up shares on the cheap.

Telstra on Thursday issued a warning to shareholders of arguably sub-standard offers for its shares being made by a recently established company, National Capital Corporation (NCC). 

Telstra reported NCC was incorporated on 22 October this year and was headed by a sole director, Ben Hirvi, a 22-year-old who is reportedly based in Brisbane.

The offers by NCC appear to target those who may be seeking refuge from Telstra's low share price, which has fallen rapidly from its six-month high in June of $3.34. Telstra's market value has hovered about $2.60 since September and on Thursday were trading at $2.64.

While one offer of $3.01 a share was above the current price, Telstra warned that the bulk -- 90 percent -- would only be paid after 26 weeks.

NCC had also offered to buy shares at $1.33 each, well below Telstra's share price.

"These offers have no association with Telstra and any shareholder who receives an offer should not accept it without seeking independent financial advice on it and all of its terms," Telstra Company Secretary Carmel Mulhern said in a statement.

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Offer feeds on Telstra shareholders' fear
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