Telstra to contend legal action

Telecom giant Telstra will fight a court petition by some minority Autohome shareholders over the sell down of its stake in the cmpany.

Telstra will fight court action brought by some minority shareholders of a Chinese online car sales group the telco recently sold a slice of to a financial services group.

Telstra said a petition has been filed in the Cayman Island courts by certain minority shareholders of Autohome.

The shareholders, which include Autohome's chief executive, are opposed to the share sale to Ping An Insurance Group.

"Telstra intends to contest the petition," it said.

The telecom giant in April announced its agreement to sell a 47.7 stake in Autohome for $US1.6 billion.

Telstra will retain a 6.5 per cent stake in Autohome following the Ping An deal, and it has pledged to return at least $1.5 billion from the sale to shareholders.


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Source: AAP


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