Telecom's share price had gained about 18% during the past month, to trade around $2.80, and after yesterday's joint announcement by the pair of telcos, its share price was steady at $2.82.
ABN Amro Craigs broker Peter McIntyre said while the market had anticipated the agreement, there was still caution surrounding Telecom stock, as its third-quarter result is due out today.
Vodafone was seeking an injunction against Telecom launching its W850 XT network, claiming it caused mobile phone interference to Vodafone customers.
Telecom has agreed to push out the launch from May 13 to the end of the month and extend a filter programme, while Vodafone will drop its move to gain an injunction.
Vodafone had argued in court that emissions from Telecom's new transmitters, while being trialled, had caused dropped calls and difficulty making calls, resulting partly in customers leaving its network, NZPA reported.
Telecom said the emissions from the transmitters were within acceptable levels and that Vodafone was trying to delay the launch for anti-competitive reasons.
• A spike of more than 30% in the share price of Fisher and Paykel Appliances on Wednesday prompted a "please explain" from the New Zealand sharemarket regulators yesterday, asking if there was any material information which required disclosure under listing rules.
Appliances' Wednesday share gain was 31.2%, rising from 48c to 63c.
Appliances replied yesterday it was not aware of any material information, but said reports of a improved sentiment to cyclical stocks may have helped.
Speculation on the likelihood of an imminent capital raising last month by Appliances was quelled a fortnight ago when it announced a month-long extension, to the end of May, to renegotiate or pay back $80 million in loans to its bankers.
"The company is also continuing to consider a range of alternatives to strengthen its balance sheet," Appliances said.
Its shares traded around 63c yesterday.
