Telstra pays $4.20 in share buyback

Telstra shareholders will get at least $1,680 each if they opt to participate in the $1 billion off-market buyback. Just under 2 per cent of Telstra's 12.7 billion shares, or 238 million shares, will be bought back at $4.20 a share. This is the lowest point of the price range that reached as high as $5.40.

Shareholders and superannuation funds will be deemed to have sold their shares at $1.50 each. So investors who bought shares in the T1 sale at $3.30 or $7.40 in the T2 sale will take losses on the sale and thus reduce their capital gains tax liabilities.

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