The prospectus for the $8-billion public float of Telstra will be launched tomorrow.
Last Update: Sunday, October 8, 2006. 4:14pm (AEST)

Potential Telstra investors warned of risks

The Australian Shareholders' Association (ASA) is urging potential Telstra investors to be wary of the risks the company faces.

The prospectus for the $8-billion public float will be launched tomorrow.

Telstra chief executive Sol Trujillo says he expects positive results from the company in the second half of this financial year.

Investors will be able to pay for the shares in two instalments, but Shareholders' Association spokesman John Curry says there are risks that should not be forgotten.

"I think the risks are the environment in which Telstra is operating - there's a number of competitors, international competitors, they're all in there trying to eat Telstra's lunch," he said.

"Frankly that's a real risk because no one is going to let Telstra suddenly get additional market share."