The company has made its IPO (initial public offering) in 1991. Currently, the company is under joint public/private ownership, with the Australian government holding 51.8% of its share as of the mid-2005 (Telstra 1). The privatization of Telstra has begun in the late 1990's by the coalition government. However, full privatization which would mean divesting all the government's shares had been blocked until the 14th of September 2005.
The true value of the company's stock is currently under hot speculation from the different industry players. Experts assert that the company's stock is overvalued as some financial information were revealed to the government, the company's largest stakeholder yet remained concealed to the remaining 1.6 million shareholders. The company had allegedly borrowed US$500 million from its reserves to cover its dividend payout in 2005 and another US$2.5 billion for its dividend obligations in 2006. It was also reported that the company needs a minimum of US$3 billion cash outlay in order to rehabilitate its faulty lines. ...Show more