Telkom shares fall

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Independent Newspapers

Photo: Simphiwe Mbokazi.

Shares of South Africa's Telkom fall 1.9 percent to 19 rand after ratings agency Moody's says a 449 million rand ($55 million) fine on the fixed-line operator is credit negative.

South Africa's competition regulator ruled last week that the company, which also runs a mobile phone service, had abused its dominance in the market.

Moody's says the fine - whilst much lower than the 3.2 billion rand recommended by the Competition Commission - will choke cash flow and increase leverage in the next two fiscal years. - Reuters


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