CANBERRA, March 19 (Reuters) - A plan to split Australia's biggest phone company Telstra is on the backburner until at least May and possibly June after the government shelved debate on the legislation, further easing pressure on the stock.
Telstra shares rose to their highest for more than a month on Thursday on doubts that the government can get its Telstra break-up bill through the Senate. Balance of power Green and independent senators this week said their support was fading.
Shares fell to an all time low of A$2.88 earlier this month but closed at A$3.17 on Thursday as investors grew more confident a break up would be delayed or taken off the agenda.
The government, short of seven votes in the obstructive upper house, abandoned debate on plans to split Telstra into separate retail and wholesale arms until parliament resumes in May, giving the company more time to strike a deal on involvement in a $39 billion high-speed broadband network.
The debate could even be shelved until June, as parliament will resume for the May 11 budget and the seven-day session then will be jammed then with fiscal debate and budget estimates hearings.
The government wants Telstra to separate its wholesale infrastructure from its retail operations, to drive increased competition and help modernise the telecoms industry, so its network of exchanges can be rolled in to the new broadband network.
The bills would also bar Telstra from acquiring specific wireless broadband spectrum, unless it separates the two arms of its business, and force it to divest its hybrid coaxial cable network and its 50 percent stake in Foxtel, Australia's biggest cable television service provider.
(Reporting by Rob Taylor; Editing by Balazs Koranyi)
((rob.taylor@thomsonreuters.com; +612 62733700; Reuters Messaging: rob.taylor.reuters.com@reuters.net)) Keywords: AUSTRALIA TELSTRA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Telstra shares rose to their highest for more than a month on Thursday on doubts that the government can get its Telstra break-up bill through the Senate. Balance of power Green and independent senators this week said their support was fading.
Shares fell to an all time low of A$2.88 earlier this month but closed at A$3.17 on Thursday as investors grew more confident a break up would be delayed or taken off the agenda.
The government, short of seven votes in the obstructive upper house, abandoned debate on plans to split Telstra into separate retail and wholesale arms until parliament resumes in May, giving the company more time to strike a deal on involvement in a $39 billion high-speed broadband network.
The debate could even be shelved until June, as parliament will resume for the May 11 budget and the seven-day session then will be jammed then with fiscal debate and budget estimates hearings.
The government wants Telstra to separate its wholesale infrastructure from its retail operations, to drive increased competition and help modernise the telecoms industry, so its network of exchanges can be rolled in to the new broadband network.
The bills would also bar Telstra from acquiring specific wireless broadband spectrum, unless it separates the two arms of its business, and force it to divest its hybrid coaxial cable network and its 50 percent stake in Foxtel, Australia's biggest cable television service provider.
(Reporting by Rob Taylor; Editing by Balazs Koranyi)
((rob.taylor@thomsonreuters.com; +612 62733700; Reuters Messaging: rob.taylor.reuters.com@reuters.net)) Keywords: AUSTRALIA TELSTRA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.