Sign up with GoogleTelkom: 'Govt is risk factor'
Jul 19 2005 04:06:36:403PM
Johannesburg - Telkom, Africa's largest telecommunications group, has identified the South African government's "considerable influence" over its strategic direction and major corporate actions as one of the risk factors to its business.
In its latest Form 20-F filing to the US Securities and Securities Commission released on Monday, it identified a wide range of potential risk factors.
With a 38% stake in Telkom, the South African government has the right to appoint five directors to the Telkom board.
Among other risk factors, Telkom said the government's policy of liberalising the telecommunications industry could lead to a situation that would "benefit our competitors and not be beneficial to us."
In a related risk disclosure, Telkom said it was challenging, in the High Court, a ruling by the competition commission in favour of the Value Added Network Services Association, which had claimed Telkom was engaging in anticompetitive practices.
Commenting on an ongoing legal battle with New Jersey-based Telcordia Technologies Inc relating to the cancellation of a service agreement in 1999, Telkom said it is "unable to predict when the dispute will be resolved or the amount that it may eventually be required to pay, if any."
Meanwhile, Telkom's share price showed little reaction to its risk disclosures.
Around 11:30, Telkom shares were flat at R119.25, marginally shy of the all-time high R122 reached on July 12.
Jul 19 2005 04:06:36:403PM
Johannesburg - Telkom, Africa's largest telecommunications group, has identified the South African government's "considerable influence" over its strategic direction and major corporate actions as one of the risk factors to its business.
In its latest Form 20-F filing to the US Securities and Securities Commission released on Monday, it identified a wide range of potential risk factors.
With a 38% stake in Telkom, the South African government has the right to appoint five directors to the Telkom board.
Among other risk factors, Telkom said the government's policy of liberalising the telecommunications industry could lead to a situation that would "benefit our competitors and not be beneficial to us."
In a related risk disclosure, Telkom said it was challenging, in the High Court, a ruling by the competition commission in favour of the Value Added Network Services Association, which had claimed Telkom was engaging in anticompetitive practices.
Commenting on an ongoing legal battle with New Jersey-based Telcordia Technologies Inc relating to the cancellation of a service agreement in 1999, Telkom said it is "unable to predict when the dispute will be resolved or the amount that it may eventually be required to pay, if any."
Meanwhile, Telkom's share price showed little reaction to its risk disclosures.
Around 11:30, Telkom shares were flat at R119.25, marginally shy of the all-time high R122 reached on July 12.
