Telstra finally goes private

TELSTRA will become a privately owned company this morning when the federal Government unloads $15.5 billion in Telstra shares, almost twice the amount forecast when it announced the sell-off last month. Enthusiasm for the public offer from small investors and institutions will allow the Government to divest a further 35 per cent of Telstra at $3.70 a share, with a 10c discount for small retail investors in Australia's second-largest float. The huge demand from "mum and dad" investors meant the Government was able to sell about 15 per cent more of the company than its original target of 20 per cent. The larger size of the sale means only 17 per cent of Telstra will remain in government hands. That stake will be transferred into the Future Fund, for the superannuation entitlements of public servants, in January.