EOH hopes to save Microsoft contract as share price tumbles
Microsoft has served EOH with a termination notice of the contract that allows the group to resell Microsoft licences
Technology company EOH said on Tuesday that it hoped to come to a resolution that would save its relationship with software giant Microsoft. Microsoft served EOH with a termination notice of the contract that allows it to resell the software giant’s licences, sending the technology group’s shares plummeting as much as 34% on the JSE. Microsoft has not given reasons for the termination of the contract, citing confidentiality, but EOH’s head of investor relations Debbie Millar said there was still room to discuss the matter and she hopes the two companies would find a resolution. “We tried to meet with Microsoft [on Monday] evening but they have agreed to a meeting [on Tuesday] evening and we hope, once we understand their reasons, we can discuss how to go forward without terminating the agreement,” said Millar. EOH’s share price tumbled to R17.55 on Tuesday, the lowest since March 16 2011. Millar said that although the termination of the contract would affect EOH’s margin, it was not...
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