Otelco shares tank on non-renewal of Time Warner contract
(Reuters) - Shares of telecom services provider Otelco Inc OTT.O fell as much as 80 percent after it said Time Warner Cable (TWX.N) will not renew a contract and suspended dividend.
The contract to provide network connections accounted for 11.7 percent of Otelco's 2011 revenue. It expires on December 31.
Otelco said dividends on the common stock of its income deposit securities — which consist of common stock and debt — will be suspended immediately.
Shares of the company touched a low of $6.62 in their biggest intraday fall to become the top percentage loser on the Nasdaq. They were later trading down 38 percent at $7.45.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)
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