Telecom

The world's largest asset management company, United States-based Black Rock, has grabbed a 5%, $250 million stake in Telecom after 16 of its global subsidiary companies purchased shares recently.

Telecom has admitted breaching the Fair Trading Act after misleading customers about the amount of broadband they used.

Telecom is appealing a ruling that saw it slapped with a massive $12 million fine last year for breaching the Commerce Act.

Telecom did nothing to scare the markets when it released its demerger documents earlier this week. The vote to separate New Telecom and New Chorus seems a sure thing. Business editor Dene Mackenzie talks to analysts about the prospects for the two companies.

Professional director and former corporate lawyer Mark Verbiest will take over as chairman of Telecom when the separation of the company is completed.

Telecom yesterday followed the lead of past governments by releasing big news at the start of a major event, almost ensuring it will go unnoticed by the majority of shareholders.

Telecom chief executive Paul Reynolds was paid $5.1 million in the year to June, the company said today.

Telecom investors appeared spooked by announcements coming out yesterday regarding the change of leadership, separation details, the shares going ex-dividend and a credit rating update.

Telecom has risen to the recent challenge by NZX chief executive Mark Weldon to include more women on boards of listed companies by appointing three to the board of New Chorus.

Telecom's chief executive Paul Reynolds will leave the company in 2012, the telco confirmed today.