Late yesterday, $A1.75 billion was wiped from Telstra’s market cap as investors took fright at new legislation that calls for the telco to voluntarily split, or be compulsorily broken up - likely losing landline assets to the public-private national broadband network, and either its 50% Foxtel stake or the right to bid for crucial mobile spectrum.

One investor, however, was happily clean and free.

Three weeks ago, the Australian federal government’s Future Fund (which invests budget surpluses to defray future superannanuation costs) sold 684 million Telstra shares for $A2.37 billion.

Yesterday, Family First senator Steve Fielding asked in parliament whether the super fund had ''unfair advance notice'' of the The Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill (2009), introduced yesterday afternoon.

But federal finance minister Lindsay Tanner said any allegations of advanced notice were ''completely untrue''.

The Future Fund’s sale was styled as part of the government’s ongoing commitment to reduce its stake in the national carrier. Since Telstra was first privatised, in 1997, the federal government has reduced its stake in three major tranches. The last, in 2006, took its holding down to 17% (still the largest individual stake in the telco).

"The Future Fund always planned to sell down its holding in Telstra, following the end of the escrow period on November 20, 2008, in an orderly manner over the medium term and to build a portfolio consistent with its long-term mandate and strategy," said Mr Tanner.

Furture Fund chairman David Murray also has denied any hint of insider trading.

"We had no advance knowledge of the government's statement," Mr Murray told the Australian last night.

After last month's sale, the Future Fund now holds a 10% stake. As part of the deal struck when it sold its last parcel three weeks ago, th fund agreed to make no more sales for at least six months.