OTHER STRUCTURING OPTIONS
      The Office of Asset Sales noted that it had been suggested that preference 
        share variants or other forms of hybrid securities could be considered 
        as capital raising options for public investment in Telstra. Amongst the 
        options put forward are preference shares with fixed and variable coupon 
        rates, participation rights, cumulative and non cumulative dividends and 
        optional rather than mandatory redemption. There are large number of structuring 
        possibilities for such preference shares and other types of hybrid securities 
        and these are set out at appendix 4. 
      Whether these preference shares and other types of hybrid securities 
        would be classified as equity or debt by the financial markets, and in 
        Telstra's accounts, depends on the specific terms and conditions attached. 
        [26] 
      Telstra also mentioned convertible notes briefly in their submission 
        but did not support them as a form of capital raising for the partial 
        sale of the company. [27] 
      The government, if it so desired, could create its own unique hybrid 
        share based on some of options suggested in evidence or alternatively, 
        Division 4 of the Telstra (Dilution of Public Ownership) Bill 1996 which 
        provides other ways for the partial sale of Telstra, including: 
      
        - the transfer by the Commonwealth of any of its shares in Telstra; 
        
- the transfer by the Commonwealth of interests in its shares in Telstra 
          to a company (the sale-scheme trustee) in the company's capacity 
          as the trustee of a trust established by a trust deed (the sale-scheme 
          trust deed); 
- an investor in Telstra initially acquiring a particular interest in 
          shares in Telstra and subsequently acquiring the remaining interests 
          in those shares; 
- the payment by Telstra of a dividend; 
- the reduction of Telstra's share capital; 
- the cancellation of a particular parcel of shares in Telstra held 
          by the Commonwealth; 
- Telstra buying back shares in itself; 
- the issue of securities in Telstra; 
- the redemption of redeemable preference shares in Telstra held by 
          the Commonwealth; 
- the alteration of Telstra's constitution.  
Footnotes
      [26] Submission No. 5, Office of Asset Sales, 
        p. 66 
      [27] Submission No. 1, Telstra, p. 1