Forsyth Barr broker Damian Foster said the shares opened at $3.60 after closing on Wednesday at $4.47. The market had wiped off $340 million in value from Sky TV after the share price fell 20% in two days.
Earlier, the commission expressed concern about the two companies controlling premium sports content in New Zealand.
"To clear the merger, we would need to have been satisfied it was unlikely to substantially lessen competition in any relevant market.
"The evidence before us suggests the potential popularity of the merged entity's offers could result in competitors losing or failing to achieve scale to the point they would reduce investment in innovation in broadband and mobile markets in the future."
InternetNZ chief executive Jordan Carter said Kiwi consumers could have been the losers from such a deal. Sky TV and Vodafone would be competitors in the ever-changing market for communications services, following the deal being declined.
