Telstra faces insider trading probe over NBN deal


Telstra faces insider trading probe over NBN deal

Nicole McCormick  |   June 23, 2010
Australia’s corporate watchdog will investigate Friday’s sudden surge in Telstra’s share price, two days before the firm announced an A$11 billion ($9.6b) deal with the state-backed NBN Co.
Telstra’s shares gained 2.2% on Friday, closing the day at their highest price for the month, with more than A$198 million in shares being traded, said the Sydney Morning Herald and Ten News.
The Australian Securities and Investments Commission (ASIC) will investigate the sudden share price spike after the matter was raised by Opposition treasury spokesman Joe Hockey.
Corporate Law Minister Chris Bowen, who referred the matter to ASIC, told the SMH he was “very concerned” about the allegations of illegal share trading. 
He said the government took the matter “very seriously.”
Telstra's share price closed eight cents lower yesterday at A$3.26, having surged more than 3% on Monday in the wake of Telstra’s A$11 billion agreement with NBN Co.
On Sunday, Telstra said it had signed a non-binding heads of agreement with NBN Co to merge its fixed-line infrastructure and customers to NBN Co. 
Nicole McCormick

Tell Us What You Think

Add comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

Video from Telecom Channel

Skype comes out!
Skype's Russ Shaw discusses its mobile play and how it plans to work with the mobile industry.   read more


Nicole McCormick
Deployments have doubled in last nine months
John C. Tanner
It's back and it's still a political nonsense solution for an overblown threat
David Kennedy/Ovum
A heads of agreement, not a final deal
Lisa Mitnick, Accenture
Operators are positioned to take the lead in embedded mobile systems by leveraging their strong brands and sales and marketing capabilities
John C. Tanner
It's not clear how consumers benefit from industry-preferred model of exclusive TV content contracts
Robert Clark
Try a checklist if your company has walls that need breaking down or information to be shared


Douglas MacMillan and Joseph Galante
After years of losing ground to Amazon in traditional online retailing
Martin Dawon, Andrew Solutions
Advances in LBS technology will make service delivery easier than ever

MWC2010 List

HTC guns for top 3 smartphone makers
Powermat wants to charge your desktop
Femtos outlook improves as cellcos seek offload options
Cheaper smartphones key to broadband takeup

Frontpage Content by Category

Industry experts put their heads together and stick their necks out to call the big trends for 2010


Staff writer
Turning your mobile device into its own mouse
Staff writer
Lim Chuan Poh will vacate his position by year-end