The Australian Senate yesterday finally approved the sale of a one third stake in state phone company Telstra Corp, which is reckoned to be worth at least $6.4bn, and the way is now open for what is being billed as the biggest share offer in the country’s history. All non-government parties opposed Prime Minister John Howard’s sale bill but it passed the upper house by a bare margin with the support of two independents who were wooed with plenty of pork from the barrel – promises of money for their home states. The minority Australian Democrats party, which is implacably opposed to any privatization, feared that sale of a third was only the thin edge of the wedge. Howard has promised that no more of Telstra will be sold without an electoral mandate. The privatization legislation limits foreign investors to 11.7% of Telstra – 35% of the share issue – and no individual foreigner will be able to take more than 5% of the company.The Australian Labor Party opposition won a last minute change to the legislation, forcing any buyers to accept continuing government power to override the company’s board. Communications Minister Richard Alston doubted that the power would affect the value: It hasn’t been used in five years, Reuters quotes the minister saying on radio: I wouldn’t expect it to be used in the future. From July market access will be wholly deregulated, and anyone will be able to start up phone service.
