The drop follows a meeting between the Department of Communications (DoC) and the South African Cabinet on Wednesday (19 September) to determine a way forward for the group.
Telkom also warned in a trading update that its headline earnings per share from continuing operations for the six months ending September 2012 are expected to be at least 65% lower than the prior comparative period.
HEPS from continuing operations for the six months ended September 2011 stood at 191.7 cents, 35.5% lower than in 2010.
By 16:15, Telkom’s shares declined 5.37%, or R1.10, to R19.40 on the JSE.
Communications minister Dina Pule met with cabinet on Wednesday to present a list of three strategic options for Telkom, having blocked a deal between the incumbent telecoms provider and Korea based KT Corp in June.