Telstra (ASX:TLS) has updated shareholders on negotiations with NBN Co, pointing out a major difference between what it considers to be acceptable and the Government’s offer.
“There is a significant gap between Telstra and NBN Co on what each party considers to be an acceptable financial outcome. There are also a range of commercial matters that are yet to be agreed,” the statement to the ASX said. “Telstra is discussing ways in which the gap can be bridged.
“A range of legislative changes and regulatory approvals will be needed for an agreement to be implemented.”
Despite noting the differences and the media attention surrounding negotiation, Telstra highlighted the talks were ongoing, adding that any changes recommended by the board would still need shareholder approval.
“Should an in-principle agreement be reached and the Telstra Board recommends a significant change to the nature or scale of Telstra’s activities… the Board intends to seek shareholder approval,” it said.
Telstra’s statement comes as the Government faces an angry Senate after the Communications Minister, Senator Stephen Conroy, refused to release the $25 million McKinsey implementation study.
The Government has been forced to deal with cross bench senators after the Opposition announced it would vote against any separation of Telstra.
Despite the prospect of stalled telecommunication reforms in the Senate and ongoing negotiations with Telstra, the Government is still introducing legislation that can affect the telco’s business.