Unsolicited Telstra share purchase offer on the loose

The potential offer, from a company called Share Express, could see some shareholders invited to sell their shares for just $2.72, or just 59 per cent of the closing May 1 Telstra share price of $4.62, said Telstra Company Secretary, Carmel Mulhern.

According to Mulhern the offer has no association with Telstra, the Government's T3 Sale Company or with the final payment required to be made by holders of T3 instalment receipts.

"We understand that this offer has been mailed to less than one percent of our shareholders," she said. "We recommend that any shareholder who receives the offer should not accept it without seeking independent financial advice, because the offer price is far below the current market price."

Share Express recently purchased a copy of Telstra's shareholder register. Under the Corporations Act, Telstra must keep a register of its shareholders. Telstra is unable to prevent any party from inspecting or purchasing a copy of its share register, Mulhern said.

She said that Share Express has only purchased Telstra's register of shareholders, not the register of T3 instalment receipt holders.

"To our knowledge, the offer is only being sent to owners of fully paid ordinary shares, not T3 instalment receipts," she said.

Mulhern reminded shareholders that Telstra's share price is published in the financial pages of major daily newspapers and is available from Telstra's on-line Investor Centre (www.telstra.com.au) and the ASX website (www.asx.com.au).

Telstra recommends that shareholders wishing to sell their shares for any reason should contact their broker or financial adviser.