JSE-listed Telkom has lashed out at media reports that senior officials wanted bribes from KT Corporation.
Yesterday, reports emerged that Korea Times had quoted sources saying that senior Telkom officials wanted huge kickbacks, which could be the reason Cabinet refused to allow the deal to go through at the end of May.
The report seems to have since been removed from the Korean news portal's Web site.
The proposed deal between Telkom and KT would have seen Telkom issue 20% more shares to gain about R3.3 billion - around a 10th of its annual revenue.
Telkom and the Department of Communications are set to meet to discuss further options. Communications minister Dina Pule has until about the end of next month to report back to Cabinet on proposed ways forward for the fixed-line operator.
Telkom says it and KT are “listed, public companies that adhere to the highest standards of corporate governance and financial control. The assertions by this source are not credible, reckless, regrettable and defamatory.”
Government's refusal to allow the deal to go through has seen Telkom's shares slump, with Friday's withdrawal of a cautionary announcement leading its stock to a new eight-year low. Government is Telkom's single largest shareholder with 39%.
Share
