Telstra readies second share buyback

Telstra's million shareholders may receive details of its $750 million share buyback as early as next week with the telco completing negotiations over terms with the Australian Taxation Office and investment bank UBS. Telstra conducted a $1 billion share buyback in 2003 in a structure that involved a fixed capital amount as well as a fully franked dividend. Investors participated via a tender process. Telstra in August said it would pay $1.5 billion of extra dividends this financial year via a $750 million share buyback and a $750 million special dividend.