Telstra shares jump as government can't get support for breakup

With news emerging that the Australian government can't get the support it needs to divvy up the incumbent service provider, Telstra appears to be winning the fight as company shares were up 2.7 percent to $2.74--the highest rise it has seen since September.

Australia's Communications Minister Stephen Conroy has failed to get the support of other political parties to divest its wireline business as the government proceeds with its $39 billion NBN Co. broadband initiative. While the prospect of a Telstra breakup is not completely off the table, it appears that some politicians want more time to study the NBN project and the breakup of Telstra.

"There is a relief rally occurring on the prospect that the legislation won't be passed," said Mark McDonnell, an analyst at Sydney-based BBY Ltd in a Bloomberg article. "It doesn't mean that it will be defeated but it will take more time."

For more:
- see this Bloomberg article

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