Despite Telecom being in possession of the leaked cabinet documents hours before Cunliffe's tough new telecommunications regulation blueprint was announced, the NZX says there is nothing to suggest that the telco breached its obligations to the sharemarket.
Telecom shares continued to trade on the NZX and ASX before and after Wednesday's announcement by Cunliffe. Sarah Tan, communications NZX, says the amount traded on NZX half an hour before Cunliffe's announcement was around $5 million. This compares to around $4 million the day before. On the ASX, Telecom's share price dropped 7.4% after the announcement, which took place after the NZ stock exchange closed.
Law firm Fendon Cleeney partner James Carnie says that as a listed company, Telecom has an obligation to disclose material events to the share market. Carnie says however that it is unlikely Telecom defaulted on its obligations yesterday.
The New Zealand government is said to be angry over leak of the documents to Telecom and has launched an investigation into the matter. Originally planned to be included in the budget on May 18, minister Cunliffe was forced to fast-track the announcement after taking legal advice on being told that his plan had been leaked to Telecom.