Trading Day – Rain reprimanded for Telkom offer and Old Mutual boasts big increase in earnings.

Rain was reprimanded by the Takeover Regulation Panel for its public offer to buy Telkom, declaring it unlawful. Telkom distanced itself from the offer, saying they had not received a formal proposal.

Old Mutual and Bidcorp released guidance for a substantial increase in earnings for their upcoming reporting periods.

Here is the biggest news of the day.

• Rain gets reprimanded for Telkom offer. The Takeover Regulation Panel (TRP) declared that the public proposal to merge with Telkom was potentially unlawful and instructed Rain to retract the announcement. Rain issued the public announcement despite being previously instructed by the TRP that no such announcement should be made without their prior approval. Telkom, in response, distanced themselves from the offer, saying that they received no formal proposal from Rain and that if they did, they would consider it following its legal obligations. Telkom reminded investors of the cautionary announcement that they are still in continuing discussions with MTN for their potential acquisition. Telkom’s share price has increased 41.5% since the announcement of its talks with MTN.
• Old Mutual guides a significant increase in earnings. The company released a trading statement for its pending half-year results, saying that they expect an increase in earnings per share (EPS) of around 74%, from R0.68 to R1.18.
• Bidcorp guides a considerable increase in earnings. The company released a trading statement for its pending full-year results, saying that they expect an increase in earnings per share (EPS) of around 56%, from R9.25 to R14.47. Bidcorp’s results are due to be released on 24 August.
• Market manipulation charges against retail investment platform RobinHood to move ahead. US District Judge Cecilia Altonaga ruled that plaintiffs’ claims must be considered. Meme stock traders piled into shares like GameStop and AMC last year on reports that institutional organizations like Citadel Securities had amassed a substantial short position. According to the claims, to avoid the consequences of the following short squeeze, Citadel pressured RobinHood to stop customers from purchasing those shares, which it did on 28 January. The restrictions allegedly artificially boosted share supply, subsequently falling in price.
• Argentina hikes interest rates by 9.5% to 69.5%. The country is facing hyperinflation, with a 20-year high of 71% (annualized) reported in July.