5 Sep 2008

Telecom dividend to be paid in cash, not shares

10:08 pm on 5 September 2008

Telecom says it will not allow shareholders to receive their fourth quarter dividend in shares, as it considers speeding up the launch of its new mobile phone network.

Instead, all shareholders will receive their 8-cents-per-share dividend for the quarter in cash.

Telecom says it would not be prudent to issue shares or buy them back, until it has decided when to deliver its $300 million next generation broadband mobile network.

The company's share price has tumbled 24% since September 2007, when chief executive Paul Reynolds took over.

The chairman of the New Zealand Shareholders Association, Bruce Sheppard, says Telecom's decision is wise given its share price.

Telecom shares were down 3c to $3.15 at the close of trade on Friday.