Australia's Finance Minister said the government would start seeking tenders this weekend for banks to handle the planned A$30 billion ($23 billion)-plus sale of the country's biggest phone company, Telstra Corp Ltd.
Nick Minchin said on Friday no decision had been made on how many investment banks would run the sale of the government's remaining 51.8 percent Telstra stake, which is expected to generate about A$200 million in fees.
If sold in one tranche, it would be the world's biggest share sale since 1997, when Japan raised about $37 billion from selling shares in Nippon Telegraph & Telephone Corp.
"The ideal window for a possible sale is in October or November 2006. If we are to be in a position to proceed with a sale in late 2006, then we need to start the process for appointing the JGCs (Joint Global Co-ordinators) immediately," Minchin said.
October-November 2006 is regarded as the optimum time for any sale for various reasons, but partly because it follows the release of Telstra's annual results and the federal government budget. The first two tranches of Telstra were also sold during that period in 1997 and 1999, respectively.
The bankers' tender will close on September 27. Minchin said the joint global co-ordinators would oversee the sale of Telstra shares.
Banks not selected for that role would be considered for inclusion on a panel to sell the stock to Australian and international institutional investors.
UBS, Goldman Sachs JBWere and Australia's largest investment bank, Macquarie Bank Ltd, were considered likely front-runners for the joint co-ordinating role, the Australian Financial Review reported on Friday.
The government plans to introduce legislation to Parliament next month to allow the sale.
The government appointed UBS and local merger advisory firm Caliburn Partnership in March to evaluate the sale of its Telstra stake, while Telstra appointed Merrill Lynch and local adviser Carnegie Wylie & Co to advise it on the sale.