AUSWR
The Association of U S West Retirees
 

 

 

Denver Inc.:  Too risky for mom
By Jane Hoback & Gil Rudawsky
Rocky Mountain News
Saturday, April 29, 2006


Too risky for mom

The turbulent sale of U S West to Qwest in the late 1990s must seem like a cakewalk to Sol Trujillo these days.

The former U S West CEO now runs Telstra, Australia's public- private phone company, and the government wants to sell its remaining 51.8 percent stake as early as October.

Trujillo told Bloomberg News that running Telstra has turned out to be his hardest job.

Since becoming CEO in July 2005, Trujillo, 54, has struggled to hold onto his customers, combat new competitors and shore up Telstra's sagging stock.  The upcoming $25 billion-plus stock sale is likely to be the third-largest of all time.  With the government as a majority stakeholder, Trujillo has had his hands full, and he wants the prospectus for this year's stock sale to carry warnings about the financial impact of regulation.

How onerous is it?

Trujillo's group managing director, public policy and communications, and former U S West colleague, Phil Burgess, 67, has said he wouldn't recommend Telstra stock to his 88-year-old mother, given current regulations.

Assistant Business Editor Jane Hoback and Deputy Business Editor Gil Rudawsky write about local business talk that doesn't necessarily end up in quarterly reports. They can be reached at business@RockyMountainNews.com.

http://www.rockymountainnews.com/drmn/business_columnists/article/0,1299,DRMN_82_4659796,00.html