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Shares in SA's largest IT services provider, EOH, continued their plunge on Friday, ending the week 23.4% down after Microsoft cut ties with the company.
The US software giant ended EOH's "channel partner agreement" status as a result of allegations of corruption regarding the awarding of a software supply contract by the department of defence to subsidiary EOH Mthombo.
With investigations still under way, EOH told shareholders this week it was no longer a reseller of Microsoft software licences.
"Microsoft has further advised they are unable to enter into any discussions regarding a possible reinstatement of the partnership until they have concluded their investigations," an EOH spokesperson told Business Times on Friday.
Investors are now concerned about EOH's relationships with other major software companies such as Adobe and SAP.
'Support from stakeholders'
"We have been in close contact with all partners to discuss this matter," the EOH spokesperson said. The company was please...
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