Telkom surges on juicy rumours

Shares in fixed-line phone operator Telkom (TKG) rose as high as 5.8% in early trade on Monday.

A dealer told I-Net Bridge that rumours of a special dividend or the approval of a proposed acquisition were doing their rounds.

"Telkom’s share price could be driven by rumours that the Competition Tribunal might approve its Business Connexion (BCX) deal, or that the company could declare a big special dividend," a dealer told I-Net Bridge.

Telkom plans to buy out IT company BCX.

Telkom’s share price struck an all-time high of R186.35 in early trade, a gain of 5.8% from its previous close.

Vodacom, which is majority-owned by Telkom, announced on Sunday that it had agreed a deal with Naspers’s MultiChoice pay-TV division to distribute a cheaper package of channels.

At 10:58, shares in Telkom were up by 3.46%, or R6.09, to R182.21.

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Telkom surges on juicy rumours