$100m to go in Telecom buy-back

TOM PULLAR-STRECKER
Last updated 10:24 21/11/2012

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Telecom is two-thirds of the way through the $300 million share buy-back it announced in February as a way of returning capital to shareholders.

Telecom signalled at its annual results in August that it would slow down the buy-back, which was originally due to be completed this calendar year.

That was widely interpreted by analysts as an admission the company's share price had become over-heated and the announcement helped send Telecom's shares down 8.5 per cent to $2.52.

At the time, Telecom had spent $169m on the buy-back. It said it had now reached the $200m mark. The average price it had paid for the $31m of shares it had bought back since August was $2.35, compared to $2.44 during the buy-back as a whole.

Telecom's shares closed down half-a-cent yesterday at $2.375.

Spokesman Andrew Pirie said the pace at which Telecom bought back the remaining $100m of shares would depend on its future share price. "The plan is to continue with the buy-back, pending market conditions," he said.

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- © Fairfax NZ News

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