Fed: Govt won't be forced into Telstra sale: Costello

AAP General News (Australia)
08-15-2006
Fed: Govt won't be forced into Telstra sale: Costello

CANBERRA, Aug 15 AAP - The federal government would not be forced into selling its
share in Telstra, Treasurer Peter Costello said today.

Following growing concerns over the sharp dip in Telstra's share price, there are questions
over whether the government will push ahead with its sale of its majority shareholding
in the telco.

Mr Costello said the government did not necessarily need the money from the Telstra
sale, and the shares could be held in the Future Fund.

"We will deal with the government's shareholding at a time which is in the interests
of other shareholders and the Australian taxpayer," he told reporters.

"We are not a forced seller.

"If the conditions don't suit, then we have indicated that the government's Future
Fund ... would be a very suitable vehicle to hold that shareholding.

"My message to anybody, whether they're in the company or elsewhere, if they think
that the government is over a barrel here, they're wrong."

AAP sw/sb/sp

KEYWORD: TELSTRA COSTELLO

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