ghoti
09-04-2006, 10:44 AM
Jitters over Telkom's R30 billion spending plan wiped almost R7 billion off the fixed-line operator's market capitalisation yesterday.
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Dealers say Telkom's announcement to analysts yesterday that by 2010 it would spend up to R30 billion on infrastructure upgrades dampened hopes for large dividend payouts in the future.
This was the main factor in the share's 7.7% fall from R160.65 to R148.30. Telkom, which started the day with a market value of R87.55 billion, ended with an R80.8 million market capitalisation.
About 8.9 million shares changed hands in 3 477 deals.
Reacting to yesterday's share price slide, Telkom's acting investor relations manager Ian Timmerman says the group is “disappointed”.
“We are disappointed, we don't like to see our shareholders lose value, but this [the infrastructure upgrade] is something that needs to be done,” he says, adding that the investment would create value and help Telkom defend its margins in an increasingly competitive market
http://www.itweb.co.za/sections/telecoms/2006/0604071035.asp?S=Financial&A=FIN&O=FPLEAD
Burn Telkom, Burn.
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Dealers say Telkom's announcement to analysts yesterday that by 2010 it would spend up to R30 billion on infrastructure upgrades dampened hopes for large dividend payouts in the future.
This was the main factor in the share's 7.7% fall from R160.65 to R148.30. Telkom, which started the day with a market value of R87.55 billion, ended with an R80.8 million market capitalisation.
About 8.9 million shares changed hands in 3 477 deals.
Reacting to yesterday's share price slide, Telkom's acting investor relations manager Ian Timmerman says the group is “disappointed”.
“We are disappointed, we don't like to see our shareholders lose value, but this [the infrastructure upgrade] is something that needs to be done,” he says, adding that the investment would create value and help Telkom defend its margins in an increasingly competitive market
http://www.itweb.co.za/sections/telecoms/2006/0604071035.asp?S=Financial&A=FIN&O=FPLEAD
Burn Telkom, Burn.