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Telstra Says It Will Consider All Options If Approached


Australia's largest telecom Telstra said on Monday it would consider all its options if it received any takeover approaches. 

There has been speculation among analysts in recent weeks that Telstra could become the target of a private equity consortium following increased interest in telcos worldwide.

In an interview on CNBC's "Squawk Australia", Telstra Chief Executive Sol Trujillo said, "Obviously, I and the board will always be open to what is in the best interests of our shareholders,".

"Rather than answering a question that says, would you be open to a takeover, that's not really the point; the point is we're open to looking at all options as a board," he added.

Trujillo said he had not had any conversations with shareholders about the issue of a potential offer for the company.

Analysts have said the Australian government has provided a catalyst for a private equity takeover of Telstra, since the government's remaining 17% stake that is held by a special state pension fund can be sold after May 20 to a single "cornerstone" investor.

Trujillo declined to speculate on whether May 20 would be the catalyst for takeover activity.

"I don't look at things like that as being the driver of our business, performance is going to be the driver of our business," he said.

Telstra has a total market capitalization of A$64.8 billion (US$53.9 billion). Its shares have gained more than 24% over the past six months.