Friday 17th October 2008
|Text too small?|
The New York-based hedge fund has renewed its criticism of New Zealand's largest publicly traded company after failing to win support to appoint new directors to the board and pursue a strategy of breaking up the business.
"Does the board seriously believe that issuing more stock with the stock price at an all-time low is beneficial to shareholders," the fund said in a statement.
This week, Telecom said profit will fall in 2009 because of NZ$574 million of spending on its high-speed mobile network. The Elliott's statement questions the viability of its funding plans for the project. Telecom has said it will help fund the network via a dividend reinvestment plan.
Shares of Telecom rose 4.5% from a record low to NZ$2.33 and have fallen 50% in the past 12 months.
No comments yet
Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal