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Johannesburg - Investors on Thursday shunned Pioneer, after the food giant was found guilty by competition authorities of cartel behaviour in Sasko, its baking division.
On Thursday afternoon, Pioneer shares traded 3% lower at 3 830c per share, from a last close of 3 950c.
The R195m fine - the highest yet imposed by the Competition Tribunal - will undoubtedly dent Pioneer's financial books, which have so far won plaudits from the market for regularly posting impressive results.
Despite damning evidence, Pioneer defiantly made no provision for a possible fine in its 2009 financial results, with MD André Hanekom insisting the firm was never part of the cartel that involved Tiger Brands and Foodcorp.
Hanekom on Thursday told Fin24.com the group's lawyers were still debating whether to appeal the verdict.
Admitting the process would be "hectic", Hanekom said: "We still need to look at the details and the implications. We'll probably take a decision towards the end of the month."
However, he chose not to comment on the possible effects of not having made provision for a fine.
"At the moment, we still don't know. I would rather not comment on that," he said.
In the year to end-September 2009, the Sasko division was the largest contributor to Pioneer's revenue and operating profit, with operating profit margins as high as 10.4%.
- Fin24.com