While it is by no means certain that Tony Abbott and the Liberal Party will win government at the upcoming election, the odds would certainly seems to be stacked against Prime Minister Gillard at this stage.
With the high probability of a change in government in September, investors are considering how that might change the investment landscape.
A recent article in The Australian Financial Review speculated that shadow treasurer Joe Hockey had identified the interstate railway asset Australian Rail Track Corporation (ARTC) as a potentially saleable asset.
The ARTC owns and manages 8500 km of rail tracks spanning from WA, through SA, Vic, NSW and up to Qld. The public accounts show that last year it made $265 million in earnings before interest, tax, depreciation, amortisation and impairments. Ascribing a multiple of 10 times to these assets, would suggest a sale price of over $2.6 billion, however this would undervalue the assets which are valued on the books at $4.2 billion and include over $1 billion in recent capital expenditure.
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So the national liberal party if elected are going to sell ARTC?
Another pending disaster