CANCELLED CONTRACT
EOH slides despite Microsoft rescue bid
Technology firm EOH’s reassurance to the market on Wednesday that it is trying to save its contract with Microsoft failed to resuscitate its share price. The company’s stock slid a further 2.02% to close at R19.40, after a Stock Exchange News (Sens) announcement gave little detail on what transpired in an urgent meeting between the two companies on Tuesday evening. EOH’s shares plummeted by more than 34% on Tuesday, reaching an eight-year low, on the news that the software giant wanted to ditch it as a direct reseller of Microsoft licences. EOH was served a 30-day notice by Microsoft, which wants to terminate a partnership agreement with EOH’s subsidiary, EOH Mthombo. Microsoft initially did not give EOH its reasons for wanting to cancel the contract. In a Sens announcement on Wednesday, EOH said both firms are aware of the urgency needed to resolve the matter and deliberations between the two are being prioritised. EOH only confirmed that a meeting was held between its senior execu...
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