Giant telecommunication firm Telstra Corporation Ltd (ASX: TLS) saw a record dip on its market shares on Wednesday following the large-scale divestiture instituted by the company's biggest shareholder and a threat of structural split up from federal authorities.

The Future Fund divulged on Tuesday that it has divested some 113.6 million of Telstra shares for an average price of $2.66 per share, effectively pulling down the sovereign wealth fund's interest in the company from 10.9 percent to a flat 10 percent.

The stock sale, according to the Future Fund, happened between September 29 and October 19 and was undertaken to take advantage of the "appropriate conditions to reduce its overweight Telstra holding by selling on-market."

Also, the government management fund set up in 2006, made clear that the on-market sale was smoothly conducted for the purpose of avoiding any untoward market impact as its board added that the decision was influence by a number of market indicators.

The Future Fund specified that "relevant considerations included the expiry in February 2010 of the board's self-imposed lock-up, equity market conditions and liquidity and the assessment of alternative investment opportunities."

Amidst the apparent surprise move, The Future Fund board reiterated its commitment of sustaining its "portfolio rebalancing in an orderly manner over the medium term."

Adding more woes to the telecommunication company's current worries is the announcement by the federal government to reintroduce to the parliament the bill that would support the structural partitioning of the giant firm, which it said would be crucial in establishing its roll out of the $43 billion National Broadband Network.

As of 1212 AEDT On Wednesday, Telstra Corporation shares were trading down by 2.26 percent at $2.59 as its index plunged by 1.31 percent.