Telecom shares boosted

Telecom shares rose 11c yesterday as the company announced it was increasing its standby credit facility.

Telecom's chief financial officer Russ Houlden said the company had signed a new $800 million facility with its bankers, replacing a US$500 million ($656m) facility. The move would give the company "significantly" more financial flexibility if needed, he said.

"The fact that, in the middle of a credit crisis, we can sign a facility which is bigger than before ... shows the confidence the banking community has in Telecom's financial strength," Houlden said.

Telecom shares closed at $3.94.