Solomon Dennis Trujillo - (Sol) - The 2006 current CEO of Telstra Corporation Limited, while Telstra Corporation is still a majority owned agency of the Commonwealth of Australia.
Sol Trujillo:
”A man who had been unemployed for more than a year – had signed a deal in June for up to $10 million a year to run the Company.”
In Denver Colorado, Sol ran US West (reported as being) ‘a stodgy regional phone company, which he sold to Qwest”.
In Colorado, Trujillo’s every move is watched, by the legions of US West retirees whose pensions bit the dust after he sold the firm to Qwest and caught the bus out of town. The share price crashed from the $US69 merger price to $US1.11, amid a welter of hyped-up accounting revelations. In Denver, they are still waiting for the vision. Moreover, they are still monitoring Mr. Trujillo.
Between 1995 and mid-1998, Trujillo was the chief executive of US West Communications – the regulated telephone subsidiary of US West Inc, which was battling the impact of new competition laws introduced when the telco industries were deregulated in 1996, forcing regional phone companies to open their systems to competition by allowing access to their networks.
The Wall Street Journal in 2002 described US West Communications as having been amongst the sleepiest of the regional Bell companies. “But managed to generate profit thanks to the heavy regulations that kept out competition,” the paper reported.
Telstra has not revealed the cost of its employee duplication with the raft of importation of foreign executives being added to its existing senior executive very highly paid ranks, nor has their relocation costs been disclosed to shareholders of Telstra®. They have not bothered to reveal whether any of Trujillo’s US imported mates have secured – a change-of-control clause at Telstra, their old favorite from their US West days.
Mr. Burgess is regarded as Trujillo’s right hand man, despite the fact his comments that he would not recommend Telstra shares to his mother, which statement is reported to have wiped $1 Billion off the value of Telstra® and sparked a political storm, in relation to Prime Minister Howard describing Burgess’s antics as “disgraceful”
It therefore flows that one must be forgiven for questioning how many Telstra® shares were used as incentives to lure these overseas newcomers to join Trujillo at Telstra®?
a. Did the newcomers agree not to take up their shares until after Trujillo had released his Telstra® rejuvenation strategy? If so, then:
b. has insider trading rules been breached by making willful statements in public to strategically drop the share price, before taking up more shares at a lower price?
Does Burgess regret having said that he would not recommend Telstra shares to his mother? “No, not at all,” he is reported to have said. Those comments were therefore intentional. In addition, did Trujillo know? “I told him I was going to talk about my mother,” Burgess laughs.
Senator Barnaby Joyce is reported as saying: “he has not met Trujillo. Nor does he want to.” - “I really wonder how they can be worth the money they think they are.”
Senator Joyce also says: “The smart money says you would have turned up here and quietly sat down to work out how it goes. You cannot imagine an Australian going overseas to suddenly run a US company and telling the Americans what to do. Frankly, if they hadn’t been here, you might actually have a Telstra share price that Phil Burgess could recommend to his mother!”
Joyce has no time for McGauchie’s role either. Says Senator Joyce: “He holds the duty of stewardship over their actions. If Sol ends up on a plane back to the States, will he have a seat for Donald next to him?”
Greg Winn (who followed Trujillo from US West to Gravitation to Orange) joined Telstra’s operations chief. Winn too, had enjoyed a generous change-of-control deal from US West, which local media assessed to be around $US 30 million at the time.
In the 2006 Telstra® annual report (conveniently not disclosed in the smaller annual review document), we note that page 106 reveals that Ziggy Switkowski exited Telstra® on the 1st July 2005 with a total package of A$30,796,725.00.
We note Ziggy’s short term incentives shares of 821,095 and his long term incentives of 245,279 etc were a good enough conflict of interests for him to have misused his insider powers to breach his February 2005 agreements entered with Minister Coonan to commercially settle our matters while before the independent administrator/intermediary Mr. J. J. Nimmo and then breach his April 2005 politically arranged agreements entered via Senator Harris to commercially settle ours and other outstanding CoT matters and outstanding legal issues before his July 2005 departure, naturally causing a lesser profit for Telstra® and a much bigger borrowed debit for Telstra’s lied to and defrauded ‘T1’ and ‘T2’ had Ziggy commercially settled with us, in compliance with Minister Coonan’s 8th February 2005 undertakings given to us, which Ministerial compensatory commitments were given to us by Minister Coonan (acing as the Acceptor of a bill of exchange and also as Minister and the MAJOR SHAREHOLDER) while in the presence of Senator Len Harris. Such a substantial commercial settlement would have noticeably reduced not only the Commonwealth’s dividends but also Ziggy’s personal take-away payouts. Steve Vizard was reported to have dishonestly used his insider knowledge while being a Telstra director to also personally increase his profits by him also misusing and abusing his Telstra Board position, and his insider powers.
By 2005, the Corporate cop had accused several former Qwest executives of a $US3 billion dollar accounting fraud designed to mislead investors in the telco bubble – and, specifically, of inflating revenue as part of a scheme to persuade US West shareholders to agree to their company being acquired.
The newly merged US West-Qwest would not fare as well as the departing Trujillo. By September 2000, the shares were back below $50. By 2002, the US corporate regulator was investigating how Qwest had booked revenue in 2000 and 2001. Joe Nacchio the emerged head of the merged US West and Qwest was forced to resign in 2002. The share price fell as low as $US1.11.
Trujillo’s preferred dance partner, Global Crossing, was just as catastrophic. Its shares had traded at $US64 but a year after Trujillo tried to engineer the merger, the company was removed from the S&P 500 index in the US, trading at 50 cents, after revelations of hyped deals to swap fibre-optic network capacity.
“The US West retirees are fuming because they had a lot of pension money in it. The one thing you can say Sol did well was to dress up the company to sell it.”
Most people, after the Qwest sale, were dumping as much stock as they could. Sol is a public utility operator, not an entrepreneur. “Sol took a company that was valuable and he wrecked It, by selling it to a company that destroyed it”
“In the annals of Wall Street disasters, a special place of dishonour should be reserved for the bosses of good companies who were so gullible or foolish that they agreed to exchange their company’s stock for shares in a company whose value was inflated by fraud or fad,” Norris a reporter is reported to have written.
Investors who cherished safety and dividends got neither,,, without the (Qwest) fraud, the Securities & Exchange Commission says, there would have been no [US West] merger. “Without the merger, shares in the original Qwest would be worthless. Who says crime does not pay?”
No doubt the many over-paid spin-doctors at Telstra®, such as Mr. Rod Bruem would try their best to twist this overview of Sol Trujillo’s past deals to make-out he has not profited at the expense of US pensioners who trusted him.
But, in Australia Sol will be and is being well protected by the ACCC, ASIC, ACMA, the Senate, the Communications Ministers past and present and by the Attorney-General’s department of OLSC, who are aiding and abetting Telstra® to continue to pervert the judicial power of the commonwealth by negligently and discriminately refusing to take the necessary legal action against the Commonwealth’s agency, Telstra®, due to their past and present employees, directors and their retained agents and servants indictable offences, that were committed prior to the ‘T1 float as part of their CoT handling tactics used to conceal their unresolved CoT liabilities owing to us and for their CoT handling misconduct used to pervert having to face Senate inquiries and Judicial inquiries and used to dishonestly and unlawfully obtain the ‘T1’, T2’ and ‘T3’ legislations to be passed in the Senate by their dishonest and blatant use of deception on the part of the past and present Communication Ministers.
See also the DCITA FOI released documents on www.telstratactics.com
a. You can then decide if the ‘T1’ and ‘T2’ shares were deceptively sold without full and proper disclosure by wilfully omitting to disclose our unresolved CoT matters liabilities in these prospectuses to ensure to conceal liabilities to wilfully over inflate the ‘T3’ share price value of the DCITA’s majority owned share holding, held in its agency, Telstra®?
b. Did Minister Coonan unlawfully engage in deceit to (in effect unlawfully or fraudulently) get the ‘T3’ legislation passed by Senator Barnaby Joyce, (who in good faith consummated the 13th September 2005 entered agreement by passing the ‘T3’ legislation on the 14th September 2006), but since passing the ‘T3’ legislation, we note in FOI documents that Minister Coonan, Telstra® and the Ministers office’s staffers (MO) have conspired and engaged in dishonesty by wilfully not honouring her 13th September 2005 undertaken agreement for all outstanding Casualties of Telstra (CoT) matters and all outstanding legal issues, to each be independently loss assessed and for compensatory commitments to be honoured by and via that process as part of the National’s 10 point ‘T3’ agreement, as entered via Senator Joyce acting on our behalf and also acing on behalf of about 25 other outstanding matters and by no such disclosures being made in Telstra’s 2006 annual report or in the ‘T3’ prospectus, is the Minister and Telstra implicated in some form of insider trading by knowing of these liabilities but choosing to wilfully not commercially settle and to omit making disclosures about contingent liabilities to other Telstra® shareholders and by omitting disclosures to potential ‘T3’ investors in the ‘T3’ prospectus?
Please tell BBB@telstratactics.com your answer!
This Telstratactics.com story includes - Some Extracts from a story written by PAMELA WILLIAMS that was printed in THE AFR MAGAZINE - BUSINESS:
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