BEHIND THE INVESTMENT NEWS

Telstra’s Cousin
By Collin Fox, 19/10/2006

None of us can choose our relatives, but we will usually make a place for them in our lives, regardless of how quirky and unusual they are. It seems this may not be the case for Telstra’s potential new director, Geoffrey Cousins.

It is no secret that there has been a stand off between Telstra and the Government regarding the appointment of Geoff Cousins to the Telstra board. I thought it an opportune time to have a closer look at the issue and see what Geoff Cousins himself has to say about the matter and what he brings to the board.

In short Geoffrey Cousins has been a consultant to Government from January 1 2005 to 31 December 2006, during this time he assisted with communications strategies, amongst other duties. Before this he was the only name on the government's consultant list since December 2002; the Government has refused to give details about the specific work he performed. There is a degree of ambiguity surrounding this man and many believe Telstra are quite justified in having concerns about his independence and his potential to disrupt the smooth and effective functioning of the board. Telstra have also suggested they have not had enough time to carry out due diligence on the proposed board member.

In an interview recently, Geoffrey Cousins said that he was a little surprised that Telstra have suggested they have had inadequate time for due diligence as they still have until the middle of November. Also perplexing to Cousins is the fact that Telstra have not even contacted him to ask any questions or request any references.

On the question of whether he is John Howard’s “man”, Geoffrey Cousins clearly stated that he is nobody’s man. Cousins cited instances where he has had major confrontations with influential business leaders such as Rupert Murdoch and Kerry Packer as testament to his substance. Asked whether Cousins knew the real reason that Telstra didn’t want him on the board, he indicated that he had no idea. In the interview Cousins mentioned his successful dealings with the regulator whilst working with Optus.

Geoffrey Cousins, asset or liability? You be the judge.

One thing is for certain though, both the Government and Telstra are sticking to their guns. A betting man would put money on a Government victory, as they currently have 51.8% of voting shares, and will remain the dominant shareholder at least until 2008 through the shares owned within the Future Fund. 

Sources:

www.alp.org.au, Article by Kelvin Thompson, Retrieved 17th October 2006

www.abc.net.au, Interview by Stephen Long, Retrieved 17th October 2006

www.theage.com.au