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Announcement of Joint Global Co-ordinators and Business Adviser for the further sale of Telstra.

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Minister for Finance and Administration





I am pleased to announcing the firms selected for the roles of Joint Global Co-ordinators and Business Adviser for the sale of further Commonwealth equity in Telstra (Telstra 2).


The firms selected for the role of Joint Global Co-ordinators are:


  • ABN AMRO Rothschild;
  • Credit Suisse First Boston, and
  • JB Were.


The Government’s Business Adviser will be Goldman Sachs.


These firms were contracted following a very competiti ve selection process among domestic and international brokers and investment banks.


Fourteen firms were invited to lodge proposals for the Joint Global Co-ordinator and Business Adviser roles. The proposals received were of a very high standard reflecting the importance of this assignment.


The selection process was undertaken by an independent selection panel comprising business representatives and senior public servants.


The Joint Global Co-ordinators role will be to lead the global selling effort for Telstra shares, provide advice on all sale issues (such as offer structure, marketing and market conditions) and to manage the sale project.


The three global co-ordinators will work together under the chairmanship of Mr Peter Young, Chairman of ABN AMRO Rothschild in Australia.


The Business Adviser’s role is to provide independent advice to the Government on all aspects of the transaction including management and structure of the offer. The business adviser will not have any role in the selling syndicate for this sale.


The Joint Global Co-ordinators have a wide range of experience for successful sale of Telstra shares in Australia and overseas and the group offered a balance between Australian and international firms with substantial privatisation and telecommunications sector experience.


The appointment of firms to other selling roles, such as domestic and international lead managers and co-lead managers will be made at a later stage in the sale process. As with Telstra 1, every Australian broking house is expected to have a role in the distribution of Telstra shares.


The appointments announced today follow the satisfactory conclusion of contractual and fee negotiations. The selling commissions and fees for the offer have been set within the competitive selection process. The levels are within the budget that the Commonwealth had previously established for the offer. Because Telstra is now listed on the Australian and New York Stock Exchanges, the fees represent a significant reduction on those paid in the 1997 Telstra initial public share offer.


The Government announced the appointment of Freehill Hollingdale and Page as domestic legal adviser on 10 December 1998.


The timing of the sale in 1999 will depend on Parliament’s consideration of the enabling le gislation and on the advice of the Joint Global Co-ordinators and Business Adviser.


Canberra 22 December 1998


Media Contact:    Greg Barns     02 6277 7400.