Trading on Telstra Shares Halted
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Major telco Telstra has pre-empted vigorous trading on the stock exchange in response to today’s announcements by requesting a trading halt.

The company has announced that planned restructuring and redundancies costs will have a negative impact on earnings for the next 18 months.

The company’s Chief Executive Officer Sol Trujillo also announced today that the company plans to increase investment to as much as $3.5 Billion over the next there years as it builds a next6 generation network capable of delivering advanced integrated services.

Redundancy provisions in the current fiscal year will increase the rate of earnings decline by as much as 30 per cent. The company has already announced a lowered earnings forecast in September this year when Trujillo told the ASX that earnings before interest and tax (EBIT) would fall between 19 per cent and 24 per cent.

Once redundancies are factored into this the 30 per cent declines are expected to increase the decline by between 25 and 30 per cent.

Trujillo spoke of a new economic model for the company based on revenue growth in the region of 2 – 2.5 per cent per annum.

The statement to the stoack exchange said “The securities of Telstra Corporation Limited (the “Company”) will be placed in pre-open at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of  normal trading on Wednesday 16 November 2005 or when the announcement is released to the market.”