Friday 5th September 2008
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The company last month said it was evaluating whether to speed the roll-out of its $300 million broadband mobile phone network. Investors who had opted to reinvest the fourth-quarter dividend will receive a cash payment instead, the company said in a statement.
"Telecom considers it is not prudent to proceed with the issue of shares under its dividend reinvestment plan for the upcoming quarterly dividend, or undertake the associated on-market share buyback of Telecom ordinary shares," the company said. "This is a strategically important and material decision."
Telecom is racing rival Vodafone Group which is offering a nationwide broadband network. Vodafone has a larger share of the nation's mobile phone market.
Shares of Telecom fell about 1% to NZ$3.09, near a 15-year low.
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Telecom Corporation of New Zealand (TEL)
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