Document Leak Wipes NZ$1.8 Billion Off Telecom Value
Document Leak Wipes NZ$1.8 Billion Off Telecom Value
May 8th, 2006: New Zealand’s Government and Telecom are reeling from a damaging document leak that has seen the Telco’s stock plunge.
The document signalled the government’s intentions to open up local broadband exchanges to competition and was supposedly leaked to the Telco by a government official.
The government had intended to release the information on budget day, May 18th. However, the leak forced the government to revel its decision early on Wednesday the 3rd of May, sparking NZ$1.8 billion drop.
Telecom spokesperson Bruce Parkes says that the report just turned up at its office unsolicited. "I'm not sure where it came from and we immediately did the right thing by informing the minister's office."
Prime Minister Helen Clarke says that Telecom only has itself to blame for the sharp decline saying that its response to the plan is what has damaged its share price, and not the announcement itself.
It is currently unclear as to how the leak occurred and who the culprit is. However, the document received by Telecom is reportedly one of 30 to 40 individually number hard copies intended only for government officials.
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