The Investment Association (IA) has accused TalkTalk of 'blatant disregard' for City guidelines after it raised £200m in a new share placing to repair its balance sheet without shareholder approval. The placing breached limits set by industry guidelines, said the IA, being equivalent to a fifth of TalkTalk's market value. The company’s shares sank to a record low on the latest in a series of downgrades but chairman Sir Charles Dunstone, who reassumed executive responsibilities last year, was defiant. TalkTalk insisted it had engaged with shareholders and respected their rights. A spokesman said: 'We are disappointed that this is happening at a time when we have been working hard on our capital plans and improving customer service. Sir Charles Dunstone has committed to investing £40m of the new cash.
The Investment Association (IA) has accused TalkTalk of 'blatant disregard' for City guidelines after it raised £200m in a new share placing to repair its balance sheet without shareholder approval. The placing breached limits set by industry guidelines, said the IA, being equivalent to a fifth of TalkTalk's market value. TalkTalk insisted it had engaged with shareholders and respected their rights. A spokesman said: 'We are disappointed that this is happening at a time when we have been working hard on our capital plans and improving customer service. Sir Charles Dunstone has committed to investing £40m of the new cash.