Summary: Telstra shareholders may have been encouraged to sell their shares in the buyback and buy them back later, but this would depend on the price of Telstra shares falling. It may appear that Telstra shares would increase in price as there would be fewer shares available to buy, but in fact, the price of Telstra shares after the buyback is unknown.
Key take-out: Investors whose super funds are mostly in pension mode are highly likely to be better off by participating in the Telstra buyback.
Key beneficiaries: SMSF trustees and superannuation accountholders. Category: Superannuation.